Statutory demand

Question 1

What is Statutory Demand?

Answer 1

• a debt collection tool

- force a debtor to pay money you think is owing

Question 2

3 Key criteria to issue a demand directly to a debtor in question:

Answer 2

1. debt must be $1000 or more
2. there must be no substantial dispute about whether the money is owing or due
3. the debt must full due on or before the statutory demand is issued.

Question 3

Certain requirements to issue a statutory demand against a debtor are:

Answer 3

• must be issued in writing
• provide details of what debt is for and specify the amount owing.
• should state where payment can be made and give an address where the debtor company can serve any proceedings on your business

Question 4

The debtor company has 15 working days to: (longer if court ordered)

Answer 4

• pay the debt
• secure the debt
• agree a compromise with your business as the creditor

Question 5

if a debtor company fails to pay the debt or respond to the statutory demand…

Answer 5

you have 30 working days to apply to the High Court to have the debtor company placed in liquidation.

Question 6

it is a streamlined process and so is not intended to solve any complicated disputes over…

Answer 6

…debts.