We offer cost effective debt recovery services backed up by extensive litigation experience in bankruptcy and liquidation proceedings, serving and setting aside statutory demands and assisting clients to enforce judgment.
A Statutory Demand is a demand made by a creditor in respect of a debt owe by a company to the creditor. The Statutory Demand process is intended to be a first step in making an application to put a company into liquidation (wind a company up) and provides a quick procedure for ensuring payment of a debt, or for finding out whether payment is possible.
Once a Statutory Demand is served on the company, the company has 10 working days to apply to the Court to have the Statutory Demand set aside, or 15 working days to satisfy the Statutory Demand.
If the Statutory Demand is not satisfied within the 15 working days, this will prove that the company is insolvent and not able to pay its debts, and the creditor can apply to the High Court to have the company put into liquidation.
Whether you are owed debt by a company, or have had a Statutory Demand served on you, we at Crawford Nelson can guide you through the process. We offer cost effective debt recovery services backed up by extensive litigation experience in bankruptcy and liquidation proceedings, serving and setting aside statutory demands and assisting clients to enforce judgment.
A company owes you an outstanding debt
If you have outstanding debt owed to you by a company, our first step would be to issue a Statutory Demand. If your debtor does apply to set aside the Statutory Demand within 10 working days to or satisfy the Statutory Demand within 15 working days, an act of insolvency is established, and we can then apply to the High Court to liquidate the company.
You have been served with a Statutory Demand
If your company has been served with a Statutory Demand, the most important thing is to seek expert legal advice and act immediately. Most creditors do not want to put a company into liquidation. We can help you seek another outcome including negotiating some sort of payment arrangement or settlement with the creditor.
If you dispute the debt in the Statutory Demand, we can:
assist you to apply to the High Court to have the Statutory Demand set aside; or, negotiate with creditors; or, respond to court proceedings and help to ensure the best outcome for your business and your reputation.
Your company is insolvent
If your company is insolvent, then you can discuss your options with us. You have only 10 working days as a shareholder to appoint a liquidator from after the service of liquidation documents, which is the document that follows the Statutory Demand.