Five chilli rating – there are 21 days to do something – how many days have gone already?
The Corporations Act 2001 allows creditors who are owed more than $2,000 to deliver to a company what is known as, a Creditor’s Statutory Demand. … The Form 509H is fairly simple to complete and must be accompanied by an Affidavit from or on behalf of the creditor verifying that the debt is due and owing.
This document if you received it, is a shortcut that allows your creditor to go to the court, send the document to you, and if you don’t have a good defence automatically have a judgement against you.
The Australian Taxation Office uses this it seems to us, more than court writs and other court proceedings. It’s a key action they will take to chase a tax debt.
If you receive one of these then your creditor is simply saying, unless you can lodge a defence that is valid, then as far as the courts are concerned we have a judgement and you owe this money NOW.
You receive this, when the Australian Taxation Office feel they have called you enough, they have sent you enough warning letter (of various colours and headings) and simply now want to be paid.
The Australian Taxation Department legal team in our experience is very efficient there isn’t usually a defence that could be offered up.
In a nutshell – After 23 years we have seen many creditors’ statutory demands and have worked through a solution with the client. In truth, it helps, as we know that the tax office isn’t wanting to deal with the debt anymore and we can work on some really robust solutions that really helps our client.
There are still opportunities to negotiate, but things have to happen so that the manager of your case believes you.