Debt Recovery Pathway

Securing money owed to you can be time consuming, frustrating and ultimately futile if your options are not clearly understood. Whether you are a small business, large corporation or an individual, we are experts in helping clients recover money that is owed to them. Utilising the legal remedies available to you, we create workable solutions to each unique situation. We pursue both formal and informal channels until a satisfactory outcome is reached.

We are now offering a complete online debt recovery service which will provide new and existing clients with a cost-effective, convenient and efficient way to recovery debts, and allow you to consider your available options.

The process is:

Debt Recovery Pathway

Your options are: 

Letter of Demand 

The first step of the debt recovery process, this formal letter of demand clearly and concisely sets out:

  • the basis for the debt (such as an invoice or contractual right to payment)

  • the amount of the debt

  • a demand for payment within a set period of time.

The letter of demand is a quick and easy way to recover an outstanding debt. We find this often results in the debtor taking the matter seriously and making payment (or arranging payment). The failure to meet a formal demand can be important for any future litigation in demonstrating that the debt remains due and payable and can also be an important factor in claiming the costs of proceedings.

Statutory demand

If the debt is $4,000 or greater, an alternative to a letter of demand is to issue a statutory demand to the debtor (provided the debtor is a company).

From the date of service of the statutory demand, the creditor has 21 days to make payment. Once served, the debtor is required to either meet the demand or apply to set it aside. Failure to comply with the demand allows the creditor to make an application to the Court to wind up the debtor in insolvency.

Statutory demands are the most effective in situations where a judgment has already been obtained, and the demand is used as an enforcement tool.

Court proceedings

If a letter of demand is not answered and if alternative dispute resolution is unsuccessful, the creditor should promptly consider commencing recovery proceedings in Court.

If you obtain judgment from the court, you will then be entitled to enforce that judgment in the event payment of the judgment debt is not forthcoming.

 

To take advantage of our debt recovery service, please complete the form below which will guide you through the best debt recovery pathway for your circumstance.

Your details

Debtor Details

Your Debt Recovery Options

Issue Court proceedings
Issue a statutory demand [$540 + GST]

Before you issue Court proceedings, we recommend that you first issue a solicitor’s Letter of Demand. We have this service available online and you can easily have one sent by clicking the 'Issue Letter of Demand Now' button below.

You may wish to issue court proceedings. Please press the submit button below and we will be in contact with you to obtain details and to discuss the matter further. Costing will be based on your individual circumstances.

You may wish to issue court proceedings. Please press the submit button below and we will be in contact with you to obtain details and to discuss the matter further. Costing will be based on your individual circumstances.

You have chosen to issue a statutory demand. Prior to issuing the statutory demand we will be in contact to have the supporting affidavit sworn and provide final advice.

Payment

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Your Debt Recovery options

  1. Issue Court Proceedings Your options include issuing court proceedings. If you would like to proceed with this option, we will be in contact with you to obtain details and to discuss the matter further. Please tick the acknowledgment box at the bottom of this page to proceed.
  2. Issue a statutory demand ($540 + GST)

    Why issue a Statutory Demand?

    Statutory demands are used to accelerate the process of the winding up of a company in circumstances where it continues to trade but is unable to pay its debts as and when they fall due.

    Requirements of statutory demand

    In summary

    1. The demand must relate to a debt or debts which total at least $4,000
    2. The debt or debts must be due and payable to the person who makes the demand.
    3. If your debt or debts are not a final judgment from a court, the demand must be accompanied by an affidavit verifying that:
      1. the debt or debts must be due and payable; and
      2. there is no genuine dispute about the existence or amount of the debt or debts to which the demand relates. Generally, if a debt is in dispute, this means that the other party does not believe that some or the whole debt is due and payable. If the other party simply cannot pay the debt, it is unlikely that the debt is in genuine dispute.
  3. Effect of non-compliance with statutory demand

    The debtor company has 21 days from the date of service of a statutory demand in which to either:

    1. Pay the amount identified on the statutory demand; or
    2. Secure or compound for the amount of the debt to the satisfaction of the creditor, that is, come to some agreement as to how the debt may be settled; or
    3. Make a court application to set aside the statutory demand

    If none of these things occur within the 21-day period, the debtor company is presumed to be insolvent. You may then rely upon that presumed insolvency to commence proceedings seeking to wind up the debtor company and have a liquidator appointed within three months of the due date for compliance with the statutory demand.

    Potential outcomes following issue of statutory demand

    The possible outcomes that may result following the issue of a statutory demand include:

    1. Your debt is paid in full.
    2. You reach a compromise regarding the debt with the debtor company.
    3. You withdraw the statutory demand based on the response received from the debtor company which raises a genuine basis to set aside the statutory demand. For example, there may be a genuine dispute, an offsetting claim by the debtor company, a failure to comply with the rules relating to the issuing of statutory demand, or some other reason.
    4. The debtor company makes an application to the court seeking to set aside the statutory demand on the basis of a defect in the demand, a genuine dispute, an offsetting claim or some other reason. If an application is made, separate time frames and costs implications will apply to that process.
    5. The debtor company voluntarily places itself into administration or liquidation. This means that an administrator or liquidator will be appointed to the debtor company. An administrator or liquidator will then seek to realise the assets of the debtor company and make payments to you and other creditors to satisfy some or all of the debt owed (should the debtor company have any assets).
    6. The debtor company does nothing, which leaves you with the option of commencing proceedings to apply to wind up the debtor company and have a liquidator appointed (within three months of the due date for compliance with the statutory demand). The liquidator will then seek to realise the assets of the debtor company and make payments to you and other creditors to satisfy some or all of the debt owed (should the debtor company have any assets).