A Simple Technique for Getting a Company to Pay What It Owes You
by Matthew Elvin
If a company owes you money, there is one particularly simple and effective technique to recover that money quickly and cheaply. You can even do it without a lawyer. Itâ€™s called a Statutory Demand for Payment of a Debt.
You can download a copy of a blank Statutory Demand for Payment of a Debt document on the internet. You then complete it along with an accompanying Affidavit, and then post it all to the registered office of the company.
If the companyâ€™s debt to you is real, the company will probably pay up within 21 days. If the company doesnâ€™t pay you within 21 days from receiving it in the post, then you are in a position where you can legally cause the company to be wound up (liquidated). This puts a lot of pressure on the company to pay you.
However, there are a few things to be aware of. Firstly, the money the company owes you must be a â€˜genuineâ€™ debt. So, if there is a genuine disagreement between you and the company about whether the money is owed to you, then you should not issue a statutory demand. If you do, the company can ask the court to set aside your statutory demand. If a court sets it aside, you may be ordered to pay the companyâ€™s legal costs. Secondly, the genuine debt must be more than $2,000.
Finally, although this is a simple and effective debt recovery technique, it is just as important as any other legal document that it is done correctly. If you make a mistake on the paperwork, you may run into serious trouble if it goes to court later on. There have been many cases where a debt was genuine, but a mistake on the original paperwork meant that the court proceeding against the company failed. For this reason, we suggest that you run your Statutory Demand past a lawyer before posting it to the company.
If a company owes you money, contact us for confidential, professional and obligation free legal advice.
Contact us to arrange a chat with one of our legal professionals. It doesnâ€™t hurt to ask.
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