Statutory Demands can now only be issued for debts of $4,000 or more
As foreshadowed in our article of 3 June 2021, the minimum debt required for a creditor to serve a Creditor’s Statutory Demand, has increased to $4,000 from $2,000 with the commencement of the Corporations Amendment (Statutory Minimum) Regulations 2021 (Cth) on 1 July 2021.
For debtors, this increase may allow for more breathing room.
For creditors, the time it may take for debts to increase from $2,000 to $4,000 may be used to utilise other debt recovery or judgment enforcement methods.
It is important to note that the increase is a permanent increase, rather than a COVID-19 health pandemic temporary relief measure for businesses across Australia.
Debtors should also note that the 21 day time period for compliance with a Statutory Demand remains the same.
CMN has a team of experienced commercial lawyers who can provide advice or representation in relation to the recovery of unpaid monies, issuing Creditor’s Statutory Demands or assisting and advising if you have received a Creditor’s Statutory Demand. Our team can be contacted on 1300 123 529 or via email.