NV Lawyers

Level 1, 83 York Street
Sydney NSW 2000

Telephone +61 2 9384 0399
Facsimile +61 2 9299 4448
What to do if you have received
a letter of demand
If you have received a letter of demand or notice of claim from us do not delay. Please seek independent legal advice.

If the letter of demand is concerning a debt, the Law Society has a helpful article you may like to review Law Society Article on Debt. A notice of claim or letter of demand often provides you with the last opportunity to make arrangements for payment before the commencement of legal proceedings. Once the legal proceedings have been commenced you may be liable for additional filing fees, interest and legal costs in the event that the claim is successful against you.

If you are served with proceedings you should, without delay, seek independent legal advice. If you delay, you can irrevocably prejudice your prospects of defending the claim or otherwise incur unnecessary costs in the event that the matter proceeds to a default judgement.

459E Notice:- If you are a corporation and have received a 459E Notice, you must immediately consider how to respond. If the debt, the subject of the Notice is not paid within twenty one (21) days it becomes prima facie evidence of insolvency and the creditor may move, without further notice, to wind up the company. It is strongly advised that you ensure that your registered office (whether it be a solicitor, accountant, or a home address, or main office) has a process by which the corporate correspondence can be clearly identified and conveyed to senior management of your corporation to avoid overlooking important correspondence such as this.

Section 57(2)(b) Notice:- This notice is a notice of default under a Real Property Mortgage in New South Wales. There are equivalent notices issued in most jurisdictions within Australia and pursuant to Clause 80 of the Consumer Credit Code. This notice generally provides to the Borrower an opportunity, within thirty (30) days to remedy the loan default or the Lender may thereafter proceed to commence proceedings for possession and sale and/or payment of the debt.

Again, delays should not be entertained. Immediately seek independent legal advice and assistance and certainly contact the Mortgagee to ascertain whether or not there are terms upon which they will delay the enforcement of the strict legal terms of this mortgage.

Bankruptcy Notice:- If this has been personally served upon you, you should immediately seek legal advice. Failure to comply with a bankruptcy notice is grounds for an application, by the creditor, for sequestration of your estate. Many options are available, including debt agreements and other arrangements with creditors.
Further Information