NSW Letter of Demand from Starta Company - What Happens if I'm Overseas?

[Nix]

Hi,

I have just moved overseas for husband's work and renting out our property. Prior to this, we had an outstanding amount of $6000, due to our buildings strata company which were charged for building repairs. We set up a payment plan with them as it was originally $20,000.

The past couple of months, I was on maternity leave and was unable to honour payment plan, instead paying some of it when we could. I had advised at the time that I couldn't make all the payments as planned but was told I had no other option. We have now just received a solicitor's letter of demand stating we pay the rest of the outstanding balance in 7 days otherwise he will start legal proceedings with no further notice.

I have been able to lend half of this amount from family and will be able to pay the rest in 4 weeks time. I have advised this to strata company but they are not withdrawing this action.

I'd like to know what happens if legal proceedings are commenced in 7 days time but I still pay all of the balance by one months time, will I still be asked to go to court?

What happens if I'm overseas?

They stipulated in solicitor's letter that I will be liable to pay all recovery costs, including the strata companies solicitors fees, is this correct?

Thank you

 

[Sophea]

Hi Nix,

Yes, even if you pay the full amount after court proceedings are initiated, although the court proceedings will be discontinued once the debt is paid you will be liable for legal costs (at the court scale, not what their solicitors have charged) and interest. But the sooner you can pay it the less you will have to pay.

 

[Sophea]

Just some additional thoughts....If you can convince the strata company to wait 4 weeks - you can sign a settlement agreement to say that if you don't pay the full amount in 4 weeks they can commence legal action. It would be in their interests anyway because it will save them legal fees.

In addition, there may be delays with any litigation if you are overseas, due to the requirement for personal service of the Statement of Claim. Once a statement of Claim is served the defendant has 28 days to file a defence. If no defence is filed default judgement can be obtained.

Although it is possible to serve someone by post or by leaving it posted to their door, if the defendant can prove they did not receive the Statement of Claim they can have the default judgement set aside. Therefore it is in the Claimant's interests to serve you personally so they can obtain default judgement as soon as possible.