What are the requirements of a statutory demand?

What are the requirements of a statutory demand?

You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. You do not need a lawyer. If the debt’s over 6 years old, you cannot usually make a statutory demand.

Can you serve a statutory demand if the debt is disputed?

If there is a genuine dispute, you should not issue a statutory demand until you have resolved the dispute with the debtor. Likewise, if you genuinely owe the debtor a sum equal to or greater than the amount, you cannot use this process.

Can an individual issue a statutory demand?

You can make a statutory demand to ask for payment of a debt from an individual or company. Anyone who’s owed money (the ‘creditor’) can make a statutory demand. When the individual or company that owes you money (the ‘debtor’) receives a statutory demand, they have 21 days to either: pay the debt.

When to make a statutory demand for payment?

Statutory demand. A formal written demand for payment of a debt within 21 days. If the debtor does not pay within the 21 days and either fails to apply to have it set aside (where the debtor is an individual), or fails to apply to restrain the creditor from presenting a winding-up petition (where the debtor is a company).

Can a statutory demand be served by email?

No, a statutory demand cannot be served by email. Service of a statutory demand must be in accordance with section 109X of the Corporations Act and/or section 9 of the Service and Execution of Process Act 1992 .

Can a company be sued with a statutory demand?

This means that a company can incur debt, sue, be sued and be issued with a statutory demand. There is a statutory minimum amount of debt which must be owed before a creditor is eligible to issue a creditor’s statutory demand for payment of debt. Section 9 of the Corporations Act defines a statutory minimum as:

Can you delete part 1 of a statutory demand?

You must ensure that the legal entity that you add to part 1, is the same legal entity that you contracted with, and is the legal entity that is owed the debt. If you are owed one amount (an unpaid invoice for example) then you can use the first option and delete the second.

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