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A Statutory Demand is a formal written demand for payment of debt that must be served to the debtor in compliance with local laws. This template includes the format for Docquet of Service and Denial Slip. The demand specifies the owed amount and reason for payment, and requires payment or a response within three weeks. If the debtor fails to take action, court proceedings for bankruptcy may be initiated and property and goods may be confiscated for the benefit of creditors.
The statutory demand is signed by the creditor or an authorised representative, and the Docquet of Service records the debtor's acknowledgment of receipt in the presence of a witness. The Denial Slip must be filled and signed by the debtor, either denying that the specified money is owed or denying that payment is required immediately.
1. Understand what a Statutory Demand is: A Statutory Demand is a formal written demand for payment of debt, which must be served to the debtor in compliance with local laws. It is a legal document that requires the debtor to make payment within the period specified, failing which the creditor may initiate court proceedings for bankruptcy against the debtor and confiscate their property and goods for the benefit of the creditors.
2. Review the template: The template provided in this document includes the format for a Docquet of Service and a Denial Slip. The Docquet of Service records that the debtor is served with the Demand by the creditor on the date specified, in the presence of a witness. The Denial Slip must be filled and signed by the debtor, stating whether they deny owing the specified money and whether they are required to pay it immediately.
3. Understand your options: As the debtor, you have two options. If you believe that you do not owe the money demanded, or that you are not required to pay it immediately, you must fill in the Denial Slip at the end of the Demand, or send a letter with the same effect by recorded delivery post to the creditor no later than 3 weeks after the Demand is served on you. If you agree that you owe the money demanded and are required to pay it immediately, you must pay the specified sum to the creditor no later than 3 weeks from the date indicated in the Demand, or find security for its payment.
4. Take action: If you agree that you owe the money demanded and are required to pay it immediately, take steps to make payment within the specified period. If you disagree, fill in the Denial Slip at the end of the Demand and send it to the creditor by recorded delivery post within 3 weeks. Failure to take appropriate action within the specified period may result in court proceedings for bankruptcy against you, and confiscation of your property and goods for the benefit of the creditors.
5. Follow local laws: It is important to ensure that you comply with local laws when dealing with a Statutory Demand. Seek legal advice if necessary to ensure that you understand your rights and obligations under the law.
By following these steps and understanding your rights and obligations, you can effectively handle a Statutory Demand for payment of debt.