Dealing with Debts; don’t put your head in the sand

There is a tendency to delay when things come up that we don’t want to deal with. They become part of the to-do pile that ultimately get done late or not at all.

This is especially the case when dealing with financial matters, like having to pay debts.  The worst thing you can do when dealing with a creditor is to ignore it.

Some of the things you definitely should not ignore include:

  1. demand letters;
  2. claims;
  3. bankruptcy notices;
  4. statutory demands; and
  5. creditors petitions.

Step 1 is to acknowledge you have a debt and therefore a problem that requires your attention. In many cases seeking prompt legal advice may resolve the problem.

It is important that you read the document served on you to identify what it is and what time frame it requires your attention.  Going to see a solicitor 19 days after being served with a statutory demand is too late and may result in your company being wound up.

The repercussions of not taking timely action could have long term detrimental consequences.

You may think that a judgement is inconsequential, but the next time you apply for a loan it will have meaning and may result in refusal of the loan. That judgement will remain on your credit report for five years.

A short consult with your lawyer may avoid a world of hurt. Contact McLaughlins Lawyers, your Gold Coast Lawyers, to arrange an initial consult with one of our experienced litigation solicitors to find out how we may assist you.

Author: Matt Kollrepp

Director: Ian Kennedy

Date: 19/09/2017