Overdue payments can create a serious strain on a company’s business and cashflow and with Christmas closures, debts can remain unrecovered even longer. 

But it doesn’t have to be this way! No one wants to be known as the Grinch, however, it is only fair that you request your invoices to be settled when they are due. 

So that you can enjoy this festive season, CTI Lawyesrs has 4 key tips for a debt-free Christmas!

Tip 1: Send a formal Letter of Demand 

If you have already tried emailing, texting or calling your debtor, send a formal letter of demand stating the amount owed and a deadline for payment before legal action is taken.

Tip 2: Issue a Statement of Claim 

A statement of claim can be issued with the relevant court (which will depend on the quantum of your debt). A statement of claim starts legal proceedings against the debtor and in some circumstances, summary judgment can be awarded if the debtor fails to respond or has no legitimate defences to liability for the debt. A successful claimant can also recover legal costs from the debtor.  

Tip 3: Claim under Security of Payment 

If the debt is in relation to works that have been carried out under a construction contract, issuing a payment claim can be a very effective method of obtaining payment. If a valid payment claim is issued under the relevant security of payment legislation, the debtor must either pay within the timeframes or provide a payment schedule specifying the amount it proposes to pay and why.  

If the debtor fails to pay or provide a payment schedule, the amount in the payment claim can be recovered as a Statutory Debt. Further, you may suspend works, under the relevant security of payment legislation, if not paid by the due date for payment. If the debtor provides a payment schedule which you disagree with, you can lodge an adjudication application which, if it results in an award, can be enforced as a judgment debt in court. 

Tip 4: Compel your debtors with a Statutory Demand

In circumstances where the debtor is not disputing the monies claimed by you, a Statutory Demand may have the desired effect. On receipt of a Statutory Demand the debtor company should pay within 21 days of receipt or go to Court to have it set aside. Should the debtor not take any of these two steps you may then take steps to wind up the debtor company. A Statutory Demand is only used when you’re owed monies by a company. 

How can CTI Lawyers assist in the collection of debts? 

CTI Lawyers are well experienced in these matters. If you’re struggling with the collection of debts before Christmas, contact the CTI Lawyers for advice on the best and most cost-effective approach.

For expert advice contact 02 9021 9699.

Contact us today!