Recover a debt you are owed
You already did the work, so the invoice is just the part where you get paid.The invoice is well past due, the follow-ups have stopped being answered, and you are deciding whether chasing it is worth the trouble. Usually it is, because most debts are paid once the request stops coming from you and starts coming from a lawyer. We send a demand that carries real consequences, issue proceedings if it is ignored, and enforce the judgment against whatever the debtor actually has. What you want is the money rather than the argument.
Paid at the letter, usually
Most debts resolve once the request comes from a lawyer rather than from you again.
The right pressure for the debtor
A company facing a statutory demand and an individual facing proceedings respond to different things.
A judgment you can collect
Enforcement targets what the debtor actually has, so you end up with money rather than paperwork.
What does recovering a debt actually involve?
Debt recovery is a series of escalating steps, and most debts are paid at the first one. It begins with a letter of demand, which for a great many debtors is the point the invoice stops being ignorable. If that fails, the path depends on who owes the money. A company that fails to comply with a statutory demand under the Corporations Act 2001 (Cth) (the Act) within 21 days is presumed insolvent, which is a powerful step and a serious one. Otherwise it is proceedings in the court that matches the amount, then enforcement of the judgment. Time matters throughout, because every debt has a limitation period.
What is the first step in recovering an unpaid debt?
A letter of demand, setting out what is owed, giving a deadline and stating what happens if it passes. A great many debts are paid at this point. It is the first time the debtor has had to treat the invoice as a real obligation.
How long do I have to recover a debt?
In most Australian states the limitation period is six years from when the debt became payable, and it is shorter in the Northern Territory. Once it passes the debt is generally unrecoverable, so an old invoice is worth acting on rather than sitting on.
Is it worth pursuing a small debt?
Sometimes, and it depends on the debtor more than the amount. Small claims processes exist for exactly this and keep costs proportionate. We will tell you honestly when the cost of recovery would outweigh what you get back.
What if the debtor has no money?
Then a judgment may be worth little, which is why it is worth checking before you spend on proceedings. We can look at what the debtor holds and advise whether recovery is realistic or your money is better spent elsewhere.
Not sure whether the debt is worth chasing?
Tell us who owes you, how much and how old it is. We will tell you what the realistic recovery looks like and what it would cost to pursue, before you spend anything.
It is your money, sitting in someone else's account
You delivered what you agreed to and you have not been paid, and the person who owes you has worked out that nothing happens when they ignore you. Each follow-up costs you time and somehow makes you feel like the one in the wrong. Meanwhile the debt gets older, the debtor’s finances may be getting worse, and the chance of recovering it in full quietly falls.
- We will tell you whether the debt is commercially worth pursuing.
- We will send a letter of demand that states the consequences of ignoring it.
- We will commence proceedings or serve a statutory demand where that fits.
- We will enforce the judgment against the debtor's assets and income.
The chasing has become a bigger job than the work you were paid for
You did the job properly and on time, and the invoice went out when it was supposed to. The first reminders got a reply, then an excuse, then nothing. Now it sits on your aged receivables, someone in your business spends part of every month on it, and you know that eventually you will either write it off or do something about it. What is hard is not the money. It is being made to feel unreasonable for asking for it.
What's included in your debt recovery service
- An assessment of the debt, the debtor and the realistic recovery.
- A letter of demand with a stated deadline and consequence.
- Court proceedings in the jurisdiction that matches the amount.
- Statutory demands against corporate debtors.
- Enforcement of judgment, including garnishee and seizure options.
An ageing debt is a shrinking debt
Debts do not improve with time. A debtor under pressure pays whoever is making the most noise, so the creditor who waits politely is the one paid last or not at all. Every debt also has a limitation period, and once it passes the claim is simply gone no matter how clearly the money was owed. Worse, a debtor heading toward insolvency spends the months beforehand paying the creditors who chased hardest, which means a patient creditor often funds the impatient ones. And a business known not to chase gets slower payment from everyone, because word travels.
How the money comes back
We start by telling you whether the debt is worth pursuing, because there is no sense spending three thousand dollars chasing four. If it is, a letter of demand goes out making the consequence of ignoring it explicit, and that resolves most matters within weeks. Where it does not, we choose the route that fits the debtor: proceedings in the court matching the amount, or for a company, a statutory demand with the consequences that carries. Once there is a judgment we enforce it against what the debtor actually has, rather than leaving you holding a piece of paper.
How a debt gets recovered
Most debts are paid at the letter. The rest need the steps behind it.Send the demand
We put the debtor on formal notice, with the consequences of ignoring it stated rather than implied.
Issue proceedings
If the demand is ignored we commence in the court matching the amount, or serve a statutory demand on a company.
Enforce the judgment
A judgment is only worth what you can collect, so we pursue the debtor's actual assets and income.
A demand that arrives differently from the ones you have been sending
Chasing money you are owed is uncomfortable in a way that has nothing to do with the law. You end up apologising for asking, and the longer it runs the more it feels like your problem rather than theirs. It is not, and the point that changes is usually the point somebody else starts asking.
We are ISO 9001 accredited, so the process is defined and you are told where the matter is. On recovery work that matters, because the cost of chasing has to stay well below what is being chased.
Our great lawyer guarantee
Six principles we hold to, whatever you bring us and however long it takes.
Take the time
We listen carefully to understand what you want to achieve, then step you through the advice and the documents.
Share our knowledge
We pass on as much as we can, so you can make your own informed decisions.
Stick to our knitting
We only do what we are good at, so you never pay for our learning.
Work as one team
Someone is always available to answer your question or point you the right way.
Fair pricing
A fixed or capped quote for advice and documents, so you do not carry the price risk.
It is your show
We are in it for a front row seat to witness your success, not for our egos.
Get paid
Tell us who owes you, how much and for how long. We will tell you what is realistically recoverable and what it will take to collect it.
More on this area of law
Read more about debt recovery, statutory demands and getting paid what you are owed.
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