Allow about three weeks to gauge how the debtor will respond to a letter of demand. We can discuss the timing and costs involved if you need to bring legal proceedings with you on a case-by-case basis.
We'll hear from you regarding a debt or debts you're looking to recover. Lots of businesses refer a few of the bad debts on their books to us at once. We'll do a conflict of interest check to make sure we can move forward and if so, we will ask you to send us a copy of the invoice or statements and any trading terms or contracts that you have that applied to the debt. We'll also make sure there are no other barriers you need to be aware of (for example, being out of time to bring your legal action, or if we have any concerns about the enforceability of your debt due to our prior experience with the debtor involved).
We'll then issue a letter of demand to the debtor requiring payment promptly. In many cases we are able to recover payment by issuing the letter of demand or sometimes debtors will arrange an installment plan to make reasonable payments regularly to you until the debt is satisfied.
If the letter of demand does not lead to the recovery of the debt then we will talk to you about the viability of issuing legal proceedings. We will work with you to be realistic as we want to make sure there's a decent prospect of success before taking this step.
There'll be some court paperwork we go over together to kick off proceedings and we'll ask you to transfer us some funds to offset disbursements (which are normally court filing fees and process server fees). Once we have filed the paperwork with the court we'll arrange to serve the paperwork on the debtor.
If the debtor does not either pay the debt and contribute to your legal fees or file a defence outlining why they dispute the debt, then we will apply to the court to seek an order in default of defence. The court will usually order that the debtor contribute towards your legal costs as well as make an order for interest to be paid.
Once we have a court order we can consider the options to enforce the debt. This may include summoning the debtor to court to conduct an oral examination of their assets and liabilities. It may involve seeking that a portion of their wage be paid to you in satisfaction of the debt, or garnishing money (like rental income) owing to them. It might be seizing property or deciding to initiate bankruptcy proceedings.
You don’t have to drive too far to see Bec slaying her guitar with her pub rock cover band. The volume is quite a contrast to her upbringing on a peaceful farm! Bec comes from three generations of dairy farmers in Camperdown. That’s a lot of legacy, life experience and appreciation for practicality – all of which she naturally applies in her advice. And her clients love her for it.
Shaun cherishes the sense of community living in Camperdown, having moved from Geelong seven years ago. It’s no wonder he enjoys playing team sports, such as cricket, tennis and soccer. He and his lovely wife also have a young son and two dogs to run around after.
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