Debt recovery is generally required when a party acquires a debt, does not dispute it, but refuses to pay it. If the debt is with a person, your only option to properly enforce the debt is to obtain a Court judgment. To do this, you must send a final demand letter before issuing proceedings in the Magistrates or County Court.
To issue proceedings at Court you will need to file a complaint and serve the complaint on the other party. The other party then has 21 days to file a defence. If no defence is filed, the matter will proceed to a default judgement.
Once you have acquired a judgement in your favour, you can then use the enforcement powers of the Court to arrange for the Sherriff to recover Assets, order an oral examination to find out the other parties financial status, garnish wages or have the other party declared bankrupt.
Where a debt remains unpaid by a company, the amount is over $2,000.00 and the debt is undisputed, you can issue a statutory demand for payment. A lawyer prepares a statutory demand, which is accompanied by an Affidavit from the Creditor setting out the amounts payable. It provides 21 days for payment. After 21 days with no response, there is a presumption that the company is insolvent. Upon application to the Federal or Federal Circuit Court, the Court will appoint a liquidator to wind the company up.
Whether you need lawyers in Knox, Waverley, Boronia, Wantirna, or elsewhere in Melbourne, we can assist you with debt recovery.
You can contact us by phone at (03) 9763 6399 or through our online enquiry form.