Our debt recovery lawyers are experienced and committed to recovering your debts fast.
When running a business, it is essential to be on top of your cash flow and being able to recover outstanding debts promptly is crucial. Attempting to recover your debt without proper legal guidance can be ineffective and put your business at risk. We offer a cost-effective way to recover your debts.
Our lawyers are experienced in matters of debt recovery, including when you are a creditor in a liquidation.
Having a lawyer with expertise in debt collection allows you to focus on your business operations without the complications of chasing an unpaid debt.
Our approach is professional and ensures that your business relationships are not unnecessarily damaged during the debt recovery process.
We can assist with:
- Drafting and sending letters of demand to the debtor
- Issuing a Statutory Demand
- Applying for an order to wind up the company
- Lodging proofs of debt
- Monitoring of liquidation process
- Obtaining judgement for payment
- Enforcement the judgement
What is a statutory demand?
Under s 459E of the Corporations Act 2001 (Cth) (Corporations Act), a person who is owed money by a company is known as a creditor and may serve on that company a document requiring payment of a debt or debts as long as those debts are due and payable, and collectively amount to at least the statutory minimum, which at present is $2,000. This document is known as a “creditor’s statutory demand for payment of debt” otherwise known as a statutory demand.
What are the requirements for a valid statutory demand?
There are strict requirements set out in the Corporations Act for the form of a statutory demand and these are enforced by the courts. Failure to comply with a statutory demand can have very dire consequences for a company and therefore it is important that it is prepared with accuracy and with strict adherence to the provisions of the Corporations Act.
In drafting and issuing a statutory demand or in reviewing a statutory demand received by a company, it is important to pay careful attention to the following items which are set out in the Corporations Act:
Writing and signature: the demand must be in writing and signed by, or on behalf, of the creditor;
Prescribed form: the demand must be in the prescribed form as set out in the Corporations Act;
Debts specified: the demand must relate to one or more “debts” and the demand must specify the details of the debt(s);
Debts due: the debt(s) to which the demand relates must be due and payable;
Debts meet minimum threshold: the debt(s) to which the demand relates must amount to at least the statutory minimum which is currently $2,000;
Affidavit: unless the debt is a judgment debt, the demand must be accompanied by a supporting affidavit that complies with the rules of court; and
Valid service: the demand must be validly served on the company, usually, pursuant to the Corporations Act.
How can a creditor issue a statutory demand?
A creditor can issue a statutory demand by completing and signing a Corporations Regulations Form 509H. Once the form is completed and signed, the creditor can issue the statutory demand by serving that document on the company, usually, by mailing it to the company’s registered office pursuant to the Corporations Act.
However, in order for the document to be a valid statutory demand, the person should have careful regard to the strict requirements imposed for a statutory demand to be valid which are discussed above.
Our disputes team can help resolve your dispute at the early stages, so that you can focus on what’s most important for your business.
Legal disputes can be costly, time consuming and draining for a business which is why it is sometimes better to resolve commercial disputes rather than take the matter to court – especially if you want a speedy resolution.
We can assist you with matters of
- Debt Recovery
- Letters of Demand
- Dispute Resolution
- Enforcing Judgments
- Infringement Claims
- Breach of Contract Claims
In a competitive globalised and highly regulated business environment, commercial disputes frequently arise, be they tortious, contractual, or relating to unfair trade conduct.
What is a commercial dispute?
A commercial dispute is any disagreement that arises in trade and commerce. A commercial dispute will usually involve money, whether owed or lost. In particular, this type of dispute can refer to:
- Invoice, or contract terms
- Quantity of product or service
- Quality of product or service
- Claims of release from liability
- Any alleged claim of deduction or offset arising out of or in connection with trade and commerce.
We understand that the risk of dispute goes hand-in-hand with the best business opportunities.
That’s why worked hard to assemble a talented dispute resolution team with a breadth of experience in alternative dispute resolution and preventative strategies to manage potential risk in your business.
Our disputes team can advise you on your contract at the start of the project, assist in the resolution of disputes during a project and take action against responsible parties for any defective building works.
How can a building dispute arise?
The most common building and construction disputes generally include:
- The erection or construction of a building;
- The renovation, extension, or alteration of a building;
- The repair of a building;
- The provision of services such as electrical, water supply, sewerage or drainage;
- The demolition or removal of a building;
- Site work including swimming pools, fences, driveways or landscaping;
- Building inspection or reports;
- Defective or poor workmanship;
- Rectification w work; and
Disputes can arise between:
- Contractors, such as electricians, plumbers and carpenters;
- Professionals, such as architects and engineers;
- Surveyors, such as quality surveyors; and
- Suppliers and manufacturers.
Another concern in the building and construction industry is security of payments. The use of multiple contracts to develop projects or buildings creates a situation where one failed contract has the potential to have a domino effect on other related contracts.
Our team have experience with these situations and can help protect you from failed contracts.