The first step is to send a letter of demand to a debtor on our law firm’s letterhead, usually on 14 day terms. We find a significant proportion of disputes will be settled at this stage, given the clear indication from a creditor that the debt will be actively pursued.
We draft the letter of demand after receiving information from you concerning the debt. It is often the case that copies of invoices you have issued will be sufficient for this stage of the process.
Our fee for issuing a letter of demand is $55 including GST. We will prepare the letter of demand before issuing you with an invoice for this fee, but will only post the demand once that fee has been paid. We do not charge any commission for our services.
If payment of the debt is not received after the letter of demand is sent we will recommend you take the next step in the process by commencing proceedings.
Proceedings will be commenced in the state of New South Wales, but may be brought against anyone in Australia pursuant to the Service and Execution of Process Act 1992.
Our fees for the commencement of proceedings are subject to the Legal Profession Uniform Law and are therefore subject to a scale. This scale increases depending on the size of the debt being recovered, but is generally between $500 and $3,000. Feel free to contact us if you have further questions about these fees.
Once proceedings are commenced and served upon your debtor (now a Defendant) they will have 28 days to either satisfy the debt or file a defence.
If a defence is filed the matter will proceed to a final hearing. Our costs for acting during this process will vary depending on many factors, including the complexity of the proceedings and the conduct of other parties involved in the litigation. We will provide you with an estimate of our costs should a defence be filed.
You will be entitled to enter judgment against a Defendant if a defence is not filed within 28 days from commencement and service in the proceedings.
Judgment is a Court order that may be enforced anywhere in Australia. There are many different avenues for enforcement of a judgment debt including:
The effectiveness of these enforcement options is dependent on the specific circumstances in each case. We will provide you with our advice at the appropriate time as to the different options available for enforcement.
Our costs for the various types of enforcement across the different options, and range from $100 for issuing a garnishee order to $350 for sending a creditor’s statutory demand.