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Insolvency Alert

In the past, when there has been no genuine dispute concerning a debt of $2,000 a creditor had been able to issue a company with a Statutory Demand.

A failure to comply with that demand was deemed an act of insolvency, and the creditor could commence winding up proceedings.

From 1 July 2021, the minimum amount for the issue a Statutory Demand concerning a debt owed by a company has been increased from $2,000 to $4,000.

In any event, issuing a Statutory Demand when the debt is not disputed remains an effective mechanism to pressure the quick repayment of debts.

Creditors, take advantage of the lower statutory minimum and contact Access Law Group to have your Statutory Demands issued before 1 July 2021.