Our detailed guide tells you what you need to know about a Creditor's Statutory Demand.
Table of Contents
- What is a Creditor's Statutory Demand?
- What are the Requirements to Serve a Creditor's Statutory Demand?
- Why Issue a Creditor's Statutory Demand?
- Before You Act, Consider:
- What Happens When Debtor Fails to Pay?
- Point by Point Summary
In an ideal world, every business transaction goes to plan and no one loses money. In a real world we live in, things do go wrong for good and bad reasons. You end up facing a challenge to recover money owed to you by another business.
You try every tool in the game, load up with patience and good will but nothing helps. What do you do?
One way to recover debt another company owes you is to issue a Creditor's Statutory Demand to the debtor.
A Creditor's Statutory Demand is a letter of demand served by a creditor to a debtor company in an attempt to recover debt owed to a creditor.
- The debt must be larger than $2000.
- The debt must be due and payable.
- The creditor is required to use Form 509H prescribed by the Corporations Act 2001.
- The creditor must provide an affidavit to verify ...