Statement of Claim
Are creditors threatening debt recovery action? It’s time to act. Creditors who have not been paid may lodge a Statement of Claim with the Court and the process is one that should not be ignored.
A Statement of Claim Can Involve:
Debt Recovery Action
Drawn out Court Processes
A Statement of Claim can have long term effects. Take them seriously.
Talk to us about your options.
Not Sure What to Do?
Call, or fill in your details below and one of our expert advisors will get back to you within 30 minutes!
Responding to a Statement of Claim
Ignoring a Statement of Claim can lead to a creditor applying for Judgement and in turn, a raft of other remedies. Here are the most important questions answered.
What is a Judgement Debt?
A Statement of Claim allows the recipient 28 days to pay a debt or file a defence to the claim.
If you don’t react to the Claim, a creditor may apply and the Court may order judgement for the debt and also interest and costs.
How is Judgement enforced?
A judgment may be enforced in a number of ways:
- A Writ of Execution against property of the Company – the sheriff may seize property that will be sold to satisfy the debt
- A Writ for the delivery of goods – the sheriff may seize goods and return them to the creditor
- A Garnishee order served on your bank accounts – funds will be removed from your bank account to satisfy the debt to the creditor
- An Examination Order – you may be compelled to appear in Court and disclose the financial position of the company and yourself
- Bankruptcy – if the debt is more than $5,000, a creditor may apply to have you declared bankrupt
- Winding up in Liquidation – a creditor owed more than $2,000 may apply to have your company placed into liquidation
What should I do?
A Statement of Claim needs to be acted upon as the potential consequences are serious.
Don’t delay in acting. Call The Insolvency Experts for free, no obligation help regarding insolvency and liquidation.