Debt Recovery
William Cotsis & Associates can offer our clients an efficient and cost effective approach to debt recovery. When you engage William Cotsis & Associates a recovery program will be implemented suited to your debt.
The following is an outline of debt recovery processes.
1. Letter of Demand - A Letter of Demand warns the debtor of your intention to commence legal proceedings unless payment is made and gives them one more opportunity to pay. The letter is also a document which may be tendered in court proceedings as written proof of your claim, the debt owed and your attempt to settle the matter. Forwarding a Letter of Demand on our letterhead often prompts the debtor in to paying the debt to avoid legal proceedings.
2. Commencing legal proceedings in either the Local, District or Supreme Court depending on the size of the debt.
Sums under $60 000
For these, a Statement of Claim is filed in the Local Court. Once the Statement of Claim is served this requires the debtor to pay the debt within 28 days. If the debt is not paid or appropriate arrangements are not made within the time period and providing a Defence is filed to the Statement of Claim, the Court can enter judgment against the debtor. This is a Court Order requiring the payment of the debt.
Once judgment has been obtained it can be enforced by various methods including:
Writ of Execution – This involves the Sheriff attending the debtor’s premises and attempting to seize and sell goods of the debtor to satisfy the judgment debt.
Garnishee Order – A creditor can apply to the Registrar of the Court for an order to garnishee money from certain people who owe money to the debtor. The most common Garnishee Order is to the debtor’s employer to take an amount from their wages. The debtor’s bank account can also be garnished.
Examination Order – A creditor may ask the Registrar to send the debtor an Examination Notice. This requires the debtor to answer questions as to their financial circumstances. The answers to these questions may help you identify the options for payment of the debt. If the debtor does not comply with Examination Notice you may apply to the Court for the issue of an Examination Summons which requires the debtor to attend Court and be questioned by the Registrar as to their financial circumstances.
Bankruptcy – Where the judgment debt is more than $1 500 you can proceed with bankruptcy proceedings in the Federal Court. This only applies if the defendant is an individual and not a company.
Winding Up Proceedings – Where a judgment is over $2 500 and the defendant is a company you can commence proceedings in the Supreme Court to wind up the defendant’s company.
Larger Claims
For claims between $60 000 and $750 000 proceedings are commenced in the District Court. Claims greater than $750 000 are dealt with in the Supreme Court. These matters are normally more complex. If proceedings are commenced in the District or Supreme Courts we advise you of all the procedures and provide you with a clear estimate of costs.
Whatever your debt recovery requirements, we are dedicated in helping you achieve the best commercial solution. We always endeavour to resolve matters without having to go to court. We are available to update you on your matters and guide you through the processes involved.
For any queries regarding debt recovery please contact us.
