What is the difference between disputed debt and good debt in a statutory demand?
Disputed debt in a statutory demand is when a creditor attempts to claim debt that the debtor claims is not owed to them, therefore they are not insolvent.
A good petitioning debt is when the debt is in a liquidated form – which is both specific and agreed – for immediate or future payment whilst the debtor cannot afford to pay the debt.
A liquidated form is when cash is generated by selling company assets in order to pay off creditors.
If it is not in a liquidated form, then recovering debt through a statutory demand is not the best route to take.