---
title: "Decide whether the debt can support a creditor’s statutory demand"
url: "https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/decide-whether-the-debt-can-support-a-creditor-s-statutory-demand"
type: "task"
site: "AI Law Framework"
id: "A8-SD-1"
practice_area: "Insolvency, Restructuring & Bankruptcy"
tier: "red"
lawyer_review: "required"
jurisdictions: ["CTH"]
last_reviewed: "2026-09-23"
---

# Decide whether the debt can support a creditor’s statutory demand

> Extract invoice dates, credits and payments into a schedule of amounts said to be due, and flag any description that does not match the proposed demand.

Canonical page: https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/decide-whether-the-debt-can-support-a-creditor-s-statutory-demand  
Last reviewed: 2026-09-23

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy.md) |
| Human involvement | Red: Lawyer writes; AI may check, clarify or collect data |
| How AI is used | Extract invoice dates, credits and payments into a schedule of amounts said to be due, and flag any description that does not match the proposed demand. |
| What the lawyer must review | Work from section 459E, regulation 5.4.01AAA and Form 509H Treat the schedule as an aid only Decide whether to demand on the source documents |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer-led judgement**

Section 459E allows a demand only for a debt, or debts, that are due and payable and at least the statutory minimum. The lawyer decides that question before a generated demand is issued.

- What the AI does: Extract invoice dates, credits and payments into a schedule of amounts said to be due, and flag any description that does not match the proposed demand.
- What the lawyer does: Decide whether each amount is due and payable and meets the statutory minimum, and whether an affidavit is required. Do not issue the demand from the schedule alone.
- Who reviews: Lawyer competent in the matter and the forum
- Basis: Read on 22 September 2026 from the Federal Register of Legislation compilations and the Federal Court notes linked here. Confirm the instrument is still current before a demand is served.
- Why: The traffic light follows the consequence of serving a statutory demand that does not match the Act, the prescribed form, or the rules of court.
- Restriction: The lawyer leads this decision. Assistance stays inside the preparation described for the task.
- Written for: AU

## Checks the lawyer makes

1. Open section 459E(1), section 9 and regulation 5.4.01AAA. For a demand served on or after 1 August 2021, the $20,000 limb does not apply. The amount otherwise prescribed is $4,000.
2. Compare section 459E(1) (“at least the statutory minimum”) with Form 509H note 2 (“must exceed the statutory minimum”) before a figure on that threshold is inserted.
3. Take credits and payments off the schedule from the source documents. Leave out any amount that is not due and payable.
4. If any debt is not a judgment debt, an affidavit is required. A judgment debt is described with the court and the date of the order. The demand is not issued unless the deponent can hold the belief in Form 7 paragraph 5 from their own knowledge.

## Notes

- Suggested working checks from the linked public source. Read that source before you rely on the check. This is not a record that the check has been done.

## Practical guide

Jurisdiction: Australia. A creditor’s statutory demand under the Corporations Act 2001 (Cth).

**Deliverable**: A short note that the debt can be demanded, or that it cannot, with the net amount and whether each debt is a judgment debt.

**Inputs**

- The contract, invoices, credits and payment records
- Corporations Act 2001 sections 9 and 459E
- Corporations Regulations 2001 regulation 5.4.01AAA and Form 509H

**Example**: The schedule shows $4,000 of invoices and a $400 credit. Section 459E(1) uses “at least the statutory minimum”. Form 509H note 2 says the amount must exceed the statutory minimum. The lawyer resolves that difference against the current text before a figure near $4,000 is printed.

**Stop and escalate when**

- A debt is contingent, prospective, or not yet due and payable.
- The deponent cannot say, from their own knowledge, that they believe there is no genuine dispute about the existence or amount of the debt.

Checked 2026-09-22.

## Sources

- [Corporations Act 2001 (Cth), compilation 27 August 2026 (C2026C00382)](https://www.legislation.gov.au/C2004A00818/latest/text) (checked 2026-09-22)
- [Corporations Regulations 2001, compilation 1 September 2026 (F2026C00854), including Form 509H](https://www.legislation.gov.au/F2001B00274/latest/text) (checked 2026-09-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [New Zealand](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/decide-whether-the-debt-can-support-a-creditor-s-statutory-demand/new-zealand.md) | Red |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*