Recovery Of Problem Debts

In the current economic climate, businesses may be experiencing greater delays in the collection of outstanding debts and an increased incidence of disputes, genuine or otherwise, in relation to accounts rendered.

This article looks at steps which can be taken to seek recovery of outstanding debts once non-legal avenues have been exhausted.

Upon that point being reached, in essence there are two options which are potentially available. (Leaving aside the more unconventional methods used by members of the underworld community!)

One option is to issue what is known as a Statutory Demand under the provisions of the Corporations Act. In essence, that involves issuing a notice of demand in a form prescribed by the Corporations Act stipulating that payment of an outstanding debt be made within 21 days of service of the Statutory Demand. Such a demand can only be issued in circumstances where the debtor is a company.