Options

• A letter of demand
• Mediation prior to taking legal action
• Statutory Demand - In accordance with the Corporations Amendment (Statutory Minimum) Regulations 2021 (Cth), from 1 July 2021, the minimum threshold for issuing a statutory demand will be $4,000.00 (up from $2,000.00). A statutory demand that was issued on or before 30 June 2021 can still be based on the lower amount of $2,000.00.  A creditor may apply for winding up of the company if the debt remains unpaid 21 days after service of a Statutory Demand.
  
• Court Proceedings
• Magistrate’s Court of Victoria – for all debts of less than $100,000.00.
• County Court of Victoria and Supreme Court of Victoria – for all debts in excess of $100,000.00, with the nature of the dispute determining which of these Courts is more appropriate.
• once a judgment debt is obtained, enforcement options include:
• attachment of earnings;
• seizure and sale of property by the Sheriff; and
• bankruptcy proceedings if the debtor is a person and the debt is more than $10,000.00.