Court action is not always appropriate or the most effective way to recover monies due.
A statutory demand is a special type of written request from a creditor requesting payment of a debt. The debtor that receives the demand has 21 days to settle the debt or 18 days to ask the court to set aside (dismiss) the demand. The court will only set aside the demand once the debtor has shown that there is a ‘genuine issue’ – it is not enough to say ‘I don’t owe the money’.
We have proved that when other more traditional recovery methods fail, serving a statutory demand results in swift payment being secured. Our experience shows that debtors contacted by this method either pay in full, or negotiate a settlement arrangement acceptable to our clients.