A Statutory Demand is a formal document, drawn up by a solicitor, which is served on a corporation that has failed to pay a bill (over $2,000). The Statutory Demand gives the company 21 dsys to pay the bill. If the company fails to pay after that, then it’s up to the creditor to make application to wind up that company. It’s a very serious document and is not something a managing director would consider ignoring.
There is one proviso! The debt is NOT to have been disputed by the debtor company. Proceed regardless and risk being sued for damages.
We have used Statutory Demands on numerous occasions and found them to be very effective. Very rarely does the debt remain outstanding after the 21 days.
Written by Richard Adams DCL5286 for First International Debt Collection