google-site-verification: google3384f1e149dad883.html google-site-verification: google3384f1e149dad883.html
  • Gartree Thomson Lawyers

Issuing a Creditor’s Statutory Demand for Payment? - Beware!

At GTL we have often found that credit managers and professionals in the collections and debt recovery industries tend to go the easy route.

As such, they wrongly believe that issuing a Creditor’s Statutory Demand for payment is a relatively hands-free and cost effective way to apply pressure to a company to obtain payment.

However, there are major questions to ask and pitfalls to avoid:

1. Is the Statutory Demand based on a Default Judgment?

2. Has the debtor remained silent and therefore unable to display any signs of insolvency (other than non-payment of debt)?

3. Is the debt due and owing and pursuable?

4. Is the debt below the statutory threshold of $2,000?

5. Has the debtor disputed the debt or raised an offsetting claim?

6. Is the debtor registered in a different state to where you are issuing?

These are just a few of the points to consider when issuing a Creditors Statutory Demand for payment.

You can download our flowchart showing the Legal Process for Debt Recovery -

And if you need help with any potential issues in issuing a Creditors Statutory Demand then give us a call - 02 9922 4111

13 views0 comments