When dealing with a statutory demand the creditor can follow the bankruptcy process or winding-up proceedings, although usually as a last resort to assist the creditor with the details of the debtor’s assets. A bankruptcy or winding-up petition is usually filed by a creditor, in the event that the debtor is unable to pay.

Creditors must be made aware of avoiding an allegation of abuse of process, which occurs when a creditor petitions for bankruptcy or the winding-up process in order to obtain collateral or any other grounds separate from the initial debt. As the new debt that the creditor is claiming for is undisputed, and therefore abuses the bankruptcy process.