Clients must exhaust all avenues to recover a debt

A client came to me with a debt recovery problem. The monies had been owing to them for some time and the client was getting no response from the debtor subsequent to letters of demand that had been sent. I issued process against the debtor in the Downing Centre Local Court Small claims division where the matter was heard and was won based on the merits of our case. The debtor still refused to make payment of the monies owed even though judgment had been ordered against him. My next step was to issue a bankruptcy notice with ITSA. On filing this I communicated with the other side's solicitor to no avail. Eventually a creditors petition was filed in the Federal Magistrates Court and the matter was heard before the Registrar where it was made known to the debtor that if payment was not received 2 weeks from the hearing then the Registrar would make him a bankrupt. Two days before the sequestration order hearing the debtor paid in full and my client was completely satisfied with the outcome as not only did we secure the original outstanding amount but the costs incurred in the process of recovering it.

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