Debt Recovery – What Are My Options

November 29, 2021

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May 20, 2022

At Carneys Lawyers we have experienced debt recovery lawyers who can help you navigate the complex process of recovering monies you are owed. Whether the debt is outstanding because of a default on a loan agreement, rental arrears, insolvency or unpaid accounts or invoices for services rendered, we can provide you with the necessary advice and services to ensure you are paid what you are owed. 

There are several key steps in the process to recovering your debt. Our debt recovery lawyers take a variety of approaches to suit your circumstances and will escalate your matter as appropriate. 

We outline, as follows, various debt recovery actions we can take on your behalf: –

Sending a Letter of Demand. A letter of demand is formal letter informing the debtor that they have an obligation to pay the monies owed and that a failure to comply could lead to legal proceedings. Such a letter can be a simple solution to provide the requisite pressure needed make payment. A debtor undergoing financial difficulty may be offered a payment plan.

Mediation and Adjudication. This is an alternative method to court proceedings where the existence or amount of debt is in dispute. This can be a more cost-effective means of recovering a debt. Should a mediator or adjudicator come to a decision that the debtor fails to comply with then such a decision can be enforced in court without having to prepare copious evidence for court. 

Recourse to the Courts. Should mediation fail or should you elect to immediately seek a decision of the Court, legal proceedings can be commenced in the appropriate court. We note that the size of the debt will impact upon the jurisdiction of the court. For debts that do not exceed $10,000 proceedings must be commenced in the Small Claims Division of the Local Court of New South Wales. Claims up to $100,000 should be commenced in the General Claims Division of the Local Court of New South Wales. The District Court hears matters where the sum claimed is less than $750,000 while the Supreme Court hears all matters in excess of $750,000. If the Court finds in your favour it will issue an order that the debtor pay your debt. 

Enforcing Court Orders Ignored by the Debtor. In some cases, debtors can complicate recovery proceedings by refusing to comply with Court Orders obtained against them. In such circumstances there are various options to force the hand of the debtor including garnishing bank accounts, examining the debtor and bankrupting them. Our debt recovery lawyers can guide you through your options to ascertain which enforcement procedure is likely to be most effective in your situation. 

The length of the debt recovery process is subject to your specific circumstances and instructions. We look forward to assisting you in recovering debts that are owed to you and ensuring you understand and feel confident in the legal processes our debt recovery lawyers undertake on your behalf.