Demand Templates

Demand For Payment

(Personal Debt)

To recover a personal debt, the first thing you need to do is legally establish that you are owed that debt. By issuing a Demand for Payment you are notifying the person who owes you that money that you want the debt repaid.

Regardless of what actions you might consider taking in the future – i.e. Small Claims Tribunal, court action – your first step is to issue a Demand for Payment.

Please read our Terms & Conditions before creating your document.

What you will need

The contents of a Demand for Payment includes:

  • The full name of the person who owes you the debt
  • Their physical address (not a PO Box, to enable it to be formally served)
  • Your name as the person who is owed the debt
  • The total amount of the debt and what it was for (a brief description will suffice)
  • The account number of the bank account you want the debt paid into
  • The number of days they have to pay the debt (note that the number of days you specify as a deadline for payment is subject to a test of ‘reasonableness’. This means that, while it may be reasonable to demand a debt for $200 be paid within five (5) days, demanding repayment of a $1 million debt within the same time period will probably not be seen as reasonable.
  • Please note that you will need to fill out the Address for Service details for each notice you want served.

Demand For Payment

(Company Debt)

To recover a debt owed by a company, the first thing you need to do is legally establish that your company is owed that debt. By issuing a Demand for Payment you are notifying the debtor company that you want the debt repaid.

Regardless of what actions you might be considering taking in the future – i.e. Small Claims Tribunal, court action – your first step is to issue a Demand for Payment.

Please read our Terms & Conditions before creating your document

What you will need

The contents of a Demand for Payment includes:

  • The full name of the person who owes you the debt
  • The registered office of the business (not a PO Box, to enable it to be formally served)
  • The creditor company who is owed the debt
  • The total amount of the debt and what it was for (a brief description will suffice. Attach the unpaid invoice using the button provided)
  • The account number of the bank account you want the debt paid into
  • The number of days they have to pay the debt (note that the number of days you specify as a deadline for payment is subject to a test of ‘reasonableness’. This means that, while it may be reasonable to demand a debt for $200 be paid within five (5) days, demanding repayment of a $1 million debt within the same time period will probably not be seen as reasonable.
  • Please note that you will need to fill out the Address for Service details for each notice you want served.

Statutory Demand

Once you have served a Demand for Payment on a company, they then have ten (10) days [or however long you specified in the Demand for Payment notice) to pay the debt, or signal that the debt is disputed.

Once the notice period has expired, the next step is to serve a Statutory Demand under s289 of the Companies Act 1993. A Statutory Demand is a written notice that requires a company that owes a debt (“the debtor company”) to pay the debt to the person or company the debt is owed (“the creditor”).

The Statutory Demand is an economic and effective means of extracting payment of a debt from a company. However, there are time frames and legal criteria that must be strictly followed if a Statutory Demand is to be effective.

Please read our Terms & Conditions before creating your document.

Points to note

  • A Statutory Demand must be issued in respect of an identifiable sum.
  • The sum claimed by way of Statutory Demand must be due and owing to the creditor at the time the Demand is issued.
  • The creditor must be certain that there is no substantial dispute as to the fact of the debt and that it is due.
  • The creditor must also be certain that the debtor company does not have any claims against the creditor for an amount equal to or greater than the amount owed to the creditor.
  • A Statutory Demand must be served on the registered office of the debtor company.
  • Once the Statutory Demand is served, the debtor company has fifteen (15) days to pay the debt, or come to an arrangement to pay that is acceptable to the creditor.
  • Once the fifteen day period has elapsed, the creditor must wait another thirty (30) days, which can be submitted as evidence that the debtor company is insolvent.
  • At this point you should consult a lawyer to advise you on the most appropriate course of action.
  • Please note that you will need to fill out the Address for Service details for each notice you want served.