What you need to know about creditor’s statutory demands:
It is a demand reserved for company debtors alone;
If your company is served with one, seek legal advice - don’t delay;
If you want to issue one, it makes sense to have a lawyer run their eyes over it for the below reasons;
The debt needs to be greater than $2,000 in usual circumstances;
If there is a genuine dispute about the debt, best not issue a statutory demand;
The form of the demand is important to get right;
For debts where no judgment or order exists, the statutory demand must be accompanied by a sworn affidavit;
There’s only 21 days to pay the debt or enter into an arrangement from the date it is served;
If you don’t address it properly within 21 days, the receiving company will be deemed insolvent and may be wound up in liquidation;
If you wish to challenge the statutory demand, it must be done within the 21 days - no exceptions;
They can be served by regular prepaid post.
If your business is carrying debtors and not making any headway, consider using a statutory demand to recover the debt.
Please give us a call if you have any questions about debt recovery options.
Kollrepp Law is here to help
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