---
title: "Creditor's statutory demand (Form 509H) and verifying affidavit: drafting and service checklist"
url: "https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/creditors-statutory-demand-checklist"
type: "precedent"
site: "AI Law Framework"
id: "a8-creditors-statutory-demand-checklist"
area_id: "A8"
kind: "checklist"
ai_level: "red"
version: 1
law_stated_as_at: "2026-10-17"
---

# Creditor's statutory demand (Form 509H) and verifying affidavit: drafting and service checklist

> Step-by-step checklist for preparing, checking and serving a creditor's statutory demand on a company, and for the debtor's 21-day set-aside window, so the demand survives a challenge.

Canonical page: https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/creditors-statutory-demand-checklist  
Law stated as at: 2026-10-17

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

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy.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 6 authorities it cites, for Australia.

## When to use it

Use before a creditor serves a statutory demand under s 459E of the Corporations Act, or when a company client has just been served with one. Do not use for individual debtors (use the bankruptcy notice route) or where the debt is genuinely disputed.

## How AI may be used

Lawyer-led. A defect or a wrong date can sink the demand or the winding up, and the verifying affidavit is the deponent's own evidence. AI may only extract and compare figures and particulars from documents the lawyer has opened.

**AI may:**

- Extract invoice dates, credits and payments from the creditor's ledger into a schedule of amounts said to be due, with a source reference on every line.
- Compare the draft demand's debtor name, ACN, registered office and schedule total against the ASIC extract and the ledger, and list every difference.
- Index service evidence (photos, receipts, file notes) into a factual timeline, leaving disputed dates unresolved.

**AI must not:**

- Must not draft, scaffold or rephrase any part of the verifying affidavit.
- Must not decide whether there is a genuine dispute or offsetting claim.
- Must not calculate the compliance or set-aside deadline as the date the firm relies on; a person calculates it and a second person checks it.
- Must not receive the client's ledgers or the debtor's correspondence in a tool whose terms allow training on inputs.

**The lawyer checks:**

- Every amount in the schedule reconciles to invoices, credits and payments, and nothing is included that is not yet due.
- Debtor particulars match an ASIC extract obtained on the day the demand is finalised.
- The affidavit is sworn on or after the date of the demand by a deponent who can verify the debt.
- Date and method of service are proved and the 21-day period is diarised by two people.

## Authorities

- [Corporations Act 2001 (Cth) ss 9 (statutory minimum, statutory period), 109X, 459C, 459E, 459F, 459G, 459H, 459J, 459N, 459Q, 459S](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Regulations 2001 (Cth) reg 5.4.01AAA and Sch 2 Form 509H](https://www.legislation.gov.au/F2001B00274/latest/text)
- [Federal Court (Corporations) Rules 2000 (Cth) r 5.2 and Form 7 (affidavit accompanying statutory demand)](https://www.fedcourt.gov.au/forms-and-fees/forms/corporations-rules)
- [Federal Court of Australia, Corporations Information Sheet 1: Winding up proceedings based on an unsatisfied statutory demand (revised 2 February 2023)](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1)
- [Acts Interpretation Act 1901 (Cth) s 29](https://www.legislation.gov.au/C1901A00002/latest/text)
- [Supreme Court of NSW Practice Note SC Gen 23 – Use of Generative Artificial Intelligence (Gen AI) paras 12-13](https://supremecourt.nsw.gov.au/documents/Practice-and-Procedure/Practice-Notes/general/current/PN_SC_Gen_23.pdf)

## Official form

[Official form](https://www.fedcourt.gov.au/law-and-practice/guides/corporations-guides/information-sheet-1)

## 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/insolvency-restructuring-and-bankruptcy/creditors-statutory-demand-checklist 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.*