Statutory Demands: Another way to collect your debts!
Not many people are aware of what a Statutory Demand is and how it can help them.
If your debtor is a company and you have supplied goods to them, you can issue the debtor with a Statutory Demand.
Instead of issuing proceedings in Court, you can serve a Statutory Demand on the debtor if:
- The debt is OVER AUD$2,000; and
- There is NO dispute over the amount owing and the supply of goods or services.
If you do serve a Statutory Demand, the debtor has 21 days to pay the debt. If the debtor disputes the Statutory Demand, it then can to apply to the Supreme Court to have the Statutory Demand set aside within that 21 day period.
If they do neither of the above – then there is a presumption that the company is insolvent – which places you into a position to wind them up (or put them into liquidation).
If the debtor wants to stay in business and there is no basis upon which it can apply to the Supreme Court to have the Statutory Demand set aside, this process is significantly cheaper than issuing a proceeding in Court.
How can we help?
After being provided with copies of the invoices, we can draft a Statutory Demand for you. You will have to swear on an affidavit to say the goods and the invoice(s) have been delivered and the money is still outstanding and there is no dispute as to the amount owed.
The first step is easy, call us on 9555-7233 or email us and we will begin the process for you.
This article provides information that is general in nature and is not a substitute for legal advice.