I Am Owed Money
Being owed money, whether it’s by an individual or company, is always stressful. But there are solutions.
Money owed by individuals
If it’s an individual that owes you money, issuing a letter of demand is usually the first step. This is usually sent after you’ve already sent one or two reminder letters and specifies you’re about to take more serious action if your debt isn’t paid.
If this letter doesn’t get a reaction then you can issue a bankruptcy notice. However, before you do this, seek legal advice as this process can be complex and time consuming.
A bankruptcy notice is a formal demand for payment. It gives the person 21 days to comply from the date you serve the notice. If he or she doesn’t comply, they are committing an act of bankruptcy. You can find more information about this process on the Australian Financial Security Authority’s website: www.afsa.gov.au.
Money owed by companies
If a company owes you money, you can send them a creditor’s statutory demand instead of a letter of demand and a liquidation notice instead of a bankruptcy notice.
Companies served with a creditor’s statutory demand have 21 days to either pay the money owed or to make an application to set aside the statutory demand.
At WAIS we work closely with individuals and advisers to determine the most appropriate solution.