A Statutory Demand is a legal document that works in the same way as a Bankruptcy Notice does on an individual, but on a company. A Statutory Demand can be issued for debts over $2,000.00.
The effect of the Demand is that once the Demand is sent to the registered office of the Company, the Company has 21 days to pay the debt set out in the Demand, otherwise it is deemed to be insolvent. A Statutory Demand can be with a judgment, and as a consequence there are fewer grounds to set aside the demand. Alternatively a Statutory Demand can be supported by an affidavit where the debt is not disputed. This may be advantageous if you do not wish to issue legal proceedings but still want to attempt to recover the debt.
A Statutory Demand can be challenged, however, if the debtor has a genuine dispute that the debt is due and payable.
A Warrant is the official document that empowers a Sheriff to seize and sell a debtor’s stock after a judgment has been entered against a debtor. Once judgment is entered, we draft, file and issue the Warrant to the Sheriff with an address for execution.
The Sheriff, empowered by the Warrant, attends the Debtor’s business or residential address and will attempt to seize stock, goods and chattels which it will then sell to recoup the amount of the judgment debt. A Sheriff can seize property that is not encumbered, such as a car without finance, but cannot seize property that are the tools of the debtor’s trade. Notably, a Sheriff’s warrant is quite useful when dealing with individuals who run businesses, because if the Warrant is unsuccessful, they are presumed insolvent.
At the same time, a Sheriff knocking on the door can lead to payment of the outstanding debt.
We are able to give you comprehensive advice on all aspects relating to debt collection. We work alongside the team at Lewis Holdway Lawyers, which means if you require the advice of a lawyer, we can put you in touch with them.
Kearley Lewis provides basic skip tracing as part of the package to our members. We only charge if we have to engage external resources. We will do everything we can to track down missing debtors and collect our clients’ outstanding debts.
As investigation work is a specialised field, we use several external investigation agencies across Australia to source the best outcome for our clients and collect their outstanding debts.
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Contact us today on our Head Office number 03 9629 8777 or email email@example.com to discuss how we can assist your business with professional commercial debt recovery
The truth is that debtor management is one of the most difficult aspects of cash flow management. Our debt collection services can improve your cash flow.