Facing a 21-day notice? A day-by-day plan

Three notices, one clock

Notice	Who receives it	Clock	If ignored
Creditor’s statutory demand	A company	21 days from service	Company can be presumed insolvent; winding-up application
Director penalty notice	A company director	Generally 21 days from the notice date	Director personally liable for certain company tax debts
Bankruptcy notice	An individual (sole trader, partner)	21 days from service	Act of bankruptcy; creditor can petition for bankruptcy

The details differ, but the planning is the same: three weeks is short once you factor in advice, negotiation, paperwork and settlement.

Days 1–3: understand and get advice

• Find the start date. Service date for statutory demands and bankruptcy notices; the date on the notice for DPNs. Count forward and mark day 21 — and day 14 as your real target.
• Confirm the amount with the creditor or the ATO.
• Book advice: a solicitor for statutory demands and bankruptcy notices; an accountant or registered insolvency adviser for DPNs.
• Check for disputes. Any part of the debt wrong, offset or disputed? That affects whether you pay, settle or apply to set aside.
• Identify security. Property owned by the company, a director or the individual.

Days 4–10: negotiate and fund

• Talk to the creditor with a concrete offer: full payment by a date, or a part payment plus a schedule. Get agreement in writing.
• Start the funding enquiry with the notice, amount and property details.
• Agree the route: usually a caveat loan or second mortgage where property is available; unsecured for trading businesses without property.
• Gather documents and line up signatories.

Days 11–14: pay and confirm

• Funds paid — often directly to the creditor, their solicitor or the ATO.
• Written confirmation that the demand is withdrawn, the notice satisfied or the penalty remitted.
• File the paperwork somewhere safe.

Days 15–21: buffer only

If you’ve followed the plan, these days are a safety margin for anything that slips. If you’re starting here, call your adviser and the creditor today and treat it as a same-day emergency.

Illustrative example: a statutory demand on day 6

Illustrative only. A Perth fabrication company is served with a statutory demand for $52,000 by a steel supplier. The director only opens it on day 6. Day 6: she calls the company’s solicitor, who confirms the debt isn’t disputed. Day 7: she calls the supplier’s solicitor, who agrees payment in full by day 14 will resolve it. Day 7: she enquires with her home details. Day 9: a caveat loan of $60,000 is funded, and the supplier is paid directly. Day 10: the demand is formally withdrawn.

What lenders need for a 21-day notice

• The notice itself and any supporting documents.
• Confirmation of the payout amount.
• ID, ABN/ACN and bank statements.
• Property details if offering security.
• A short explanation of how the debt arose and how the loan will be repaid.

Which advisers do I need, and when?

Three weeks is enough time to get proper advice, but only if you book it in the first few days.

Notice	First adviser	Why
Statutory demand	Commercial solicitor	Whether to pay, settle or apply to set aside — and the set-aside deadline can’t usually be extended
Director penalty notice	Accountant or registered insolvency adviser	Whether the penalty can be remitted by payment, arrangement or administration, and whether it’s a lockdown notice
Bankruptcy notice	Solicitor, possibly a registered trustee	Whether the notice is valid, and alternatives if debts are wider

Tell each adviser up front that the matter is urgent and give them the notice date. Most will prioritise a 21-day matter. Ask them two questions: “Is paying the right option?” and “What do you need from me this week?”

What if I receive more than one notice?

It happens. A company behind on tax may receive a director penalty notice for each director at the same time a supplier serves a statutory demand. Treat them as one emergency with several deadlines. List each notice, its start date, its amount and its consequence, and work to the earliest deadline first. A single property-secured loan can often resolve several notices at once, paying each creditor or the ATO directly at settlement — which is usually cheaper and simpler than a separate loan for each.

Can I negotiate the amount?

Sometimes. Creditors may accept a reduced sum for quick payment, and solicitors can often resolve disputed portions separately. The ATO is generally less flexible on the amount but may accept an arrangement. Any reduction should be confirmed in writing before you rely on it.

Start the countdown properly

Start a 60-second enquiry on the day the notice arrives, even before your adviser appointment.

There’s no credit check when you first enquire, and we don’t push your details out to a crowd of lenders. One specialist handles it and calls you back. Tell us which notice you’ve received, its date and the exact amount — accurate details let us fund well inside the 21 days. See if you qualify.