---
title: "Bankruptcy notice application (AFSA online) and creditor's statutory demand: checklist"
url: "https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/bankruptcy-notice-and-statutory-demand"
type: "precedent"
site: "AI Law Framework"
id: "a46-bankruptcy-notice-and-statutory-demand"
area_id: "A46"
kind: "form"
ai_level: "red"
version: 1
law_stated_as_at: "2026-10-17"
---

# Bankruptcy notice application (AFSA online) and creditor's statutory demand: checklist

> A checklist for the two insolvency demands: a bankruptcy notice against an individual judgment debtor, applied for online through AFSA, and a creditor's statutory demand against a company, with thresholds, timing,…

Canonical page: https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/bankruptcy-notice-and-statutory-demand  
Law stated as at: 2026-10-17

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

A checklist for the two insolvency demands: a bankruptcy notice against an individual judgment debtor, applied for online through AFSA, and a creditor's statutory demand against a company, with thresholds, timing, service and the traps that get them set aside.

## Key facts

- Kind: Form. A form to complete, or a guide to completing an official one.
- Practice area: [Debt Recovery & Civil Enforcement](https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement.md)
- Jurisdictions: Australia
- AI level: Red. Keep AI out of the decisive steps. A lawyer does the work.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the official form at afsa.gov.au and the 6 authorities it cites, for Australia.

## When to use it

Use when an individual has an unpaid final judgment of at least the statutory minimum, or a company owes an undisputed debt of at least the statutory minimum, and the client is prepared to pursue bankruptcy or winding up. Do not use either as a routine collection letter or where the debt is genuinely disputed.

## How AI may be used

Lawyer-led. AI may extract the judgment details, the debtor's exact name and the amounts from the sealed judgment and the ledger, and list any figure the lawyer's draft does not support, but the lawyer prepares and checks the demand.

**AI may:**

- Extract the debtor's exact name, ACN or address, the judgment date and the judgment amount from the sealed judgment
- List every figure in the lawyer's draft that no judgment line or ledger entry supports
- Diarise the service deadline and the 21-day compliance period from the service date the lawyer confirms

**AI must not:**

- Must not prepare the bankruptcy notice application or statutory demand
- Must not decide whether a debt is genuinely disputed or whether an offsetting claim exists
- Must not prepare any part of the affidavit verifying the debt

**The lawyer checks:**

- The debt meets the current statutory minimum and the judgment is final and in time
- Names, amounts and interest exactly match the judgment and the prescribed form
- There is no genuine dispute or offsetting claim (for a statutory demand)
- Service is valid and the compliance date is correctly calculated

## Authorities

- [Bankruptcy Act 1966 (Cth) ss 40(1)(g), 41](https://www.legislation.gov.au/C1966A00033/latest)
- Bankruptcy Regulations 2021 (Cth)
- [Corporations Act 2001 (Cth) ss 109X, 459E, 459G, 459H](https://www.legislation.gov.au/C2004A00818/latest)
- [AFSA, Bankruptcy notice (online application guidance)](https://www.afsa.gov.au/owed-money/bankruptcy-notice)
- [Federal Court of Australia, Corporations Information Sheet 1: winding up proceedings based on a statutory demand](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1)
- [Federal Court of Australia, Bankruptcy Information Sheet 4: setting aside a bankruptcy notice](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4)

## Official form

[Official form](https://www.afsa.gov.au/owed-money/bankruptcy-notice)

## Where this comes from

The official form is published by afsa.gov.au; this page is a completion guide. Last checked on 2026-10-17.

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/debt-recovery-and-civil-enforcement/bankruptcy-notice-and-statutory-demand and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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