How To Get Paid Quickly
Keeping on top of debtors is vital for running a successful business. If you’re owed money by a company, serving what is known as a statutory demand can be an easy and cost-effective way to get quick payment of the debt.
Statutory demands can be made by anyone who is owed $1,000 or more by a company, as long as the debt isn’t in dispute. They usually involve us preparing a one page demand and then serving it on the debtor.
If you’re on the receiving end of a statutory demand and your company has been served with one, it’s important to act quickly. The timeframes to respond are really tight and unsuspecting business owners are often caught out. A company has only 15 working days after being served to pay up the money owed or satisfy the creditor in some other way. If the company disputes that the money is owed, it only has 10 working days to ask the High Court to set it aside. That’s short!
If the company doesn’t pay when it should then it’s assumed it can’t pay any of its debts. An application can then be made to the Court to wind up the company by putting it into liquidation.
Have you been served with a statutory demand or want to pursue an unpaid debt? Contact us today for advice from one of our experienced lawyers.