Debt Recovery - To Sue Or Not To Sue
Date: September 03, 2008
Authors: Adrian Culas LL.B. (Hons.), CLP.
Imagine this situation.
Your regular Customer calls you and request delivery of some goods in store. A delivery order and an invoice for the goods are raised and the goods are promptly delivered the next day to the customer. The delivery order is acknowledged and invoice handed over your customer with a thirty day credit period. Thirty days lapses and the customer failed to make payment. Despite various reminders, the Customer still refuses to pay the outstanding amount. That regular customer has now become a debtor of your company.
What can you do?
Your first step is to instruct a solicitor to send a letter of demand to the Customer informing them of the contract entered between the parties and the money outstanding, and giving them a period within which to pay the outstanding sum due or face further legal action. It is wise to have a solicitor do this as care must be taken in drafting a letter of demand as a defective letter of demand could result in complaints being made against you for harassment.
In a matter where the debt is owed by a company, you can instruct your solicitor to issue a statutory demand if you receive no proposal of settlement or response from the letter of demand. A statutory demand is similar to a letter of demand but it states that the debtor has 21 days to pay the entire amount to your satisfaction failing which you could take steps to wind up the company.
Your customer’s options upon receipt of the demand
The customer may contact you to settle the entire outstanding amount or negotiate a payment arrangement to settle the entire amount due and owing to you together with your legal costs and interest and this in effect would bring the entire episode to an end without the need to proceed with further legal proceedings.
Or
Your customer continues to disregard your demand and refuses to pay. At this point in time if the debtor does not respond to your written request/demand you may consider taking further legal action.
Legal Proceedings
If you wish to recover your debt through legal proceedings you should certainly seek the advice of a solicitor experienced in this field such as LAC Lawyers. They have the skills and experience to guide you through the court process to gain a successful outcome.
The commencement of the proceedings is dependant on the amount due and owing to you and the main court dealing with debt recovery matters are:
- The civil jurisdiction of the Local Court is divided into 2 divisions. The Small Claims Division deals with claims that are less than $10,000 and The General Division deals with claims over $10,000 but less than $60,000;
- The District Court of NSW deals with debts not exceeding $750,000.
- The Supreme Court of NSW deals with debts over $750,000.
LAC Lawyers is ready and willing to fight for your rights and represent your interests to achieve the best result. Call us on 1300 799 888 for a consultation to consider your options.
Contact us now for Fast, Accurate and Timely legal advice
Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email
Am I Being Sued?
Date: March 26, 2010
Author(s): Pheba Netto LL.B. (Hons)
This is the question that one would often ask yourself when you receive a letter from a legal firm. Many people often receive mail, emails, faxes, notifications etc in their mail or by personal service, courier and several other methods notifying them that legal action has commenced or that it is being contemplated. To the ordinary man on the street, this alone can cause a lot of stress and worry and be the root of unnecessary panic and anxiety.
Bankruptcy - Advantages and Disadvantages of Bankruptcy
Date: January 16, 2009
Author(s): LAC Lawyers
Bankruptcy involves you handing over control of your property and finances to a Trustee (the person who takes control over your property) in exchange for protection from legal action by your creditors (the people/companies you owe money to). You do not have to have a minimum amount of debts or property to enter bankruptcy.
Business Law - Personal Guarantees & Indemnity
Date: August 04, 2009
Author(s): LAC Lawyers
If you are a supplier of goods and operate your business on a credit system then it pays to protect your position in relation to your debtors. The following scenario depicts a common occurrence in the supplier/purchaser market leading to frustration and ultimately loss of moneys owning.
Criminal Law - Centrelink Offences - An Overview
Date: May 10, 2010
Author(s): Pheba Netto LL.B. (Hons)
There are various types of Centerlink offences the most common Centrelink Fraud, i.e. engaging in conduct to obtain a financial advantage from a Commonwealth entity knowing and believing that one is not eligible to receive that financial advantage. Most often people deliberately provide Centrelink with false, incomplete or misleading information and break the law.
Debt Recovery - Commencing Legal Proceedings
Date: March 17, 2009
Author(s): LAC Lawyers
Statements of claim, defences, affidavits, plaintiffs, defendants....to the average person these legal terms may be confusing and often times down right intimidating. Unfortunately, these terms are just some of the legal jargon used when someone decides to commence legal proceedings against another person or company. So what does it all mean?
Debt Recovery - Personal Insolvency Agreements
Date: August 04, 2009
Author(s): LAC Lawyers
If you find that you are overwhelmed with debt and cannot pay all those debts as and when they are due but at the same time you do not want to be declared a bankrupt, you may still have the option of entering into a Personal Insolvency Agreement (“PIA”).
Debt Recovery - Take Care With Statutory Demands
Date: July 04, 2009
Author(s): LAC Lawyers
A solicitor attempted to extract an unjustifiable fee from one of his former corporate clients. He served an “ever popular” Creditor’s Statutory Demand on his “client”. The law requires that a corporate debtor must satisfy the demand or lodge an application to the court to set aside the demand within 21 days or the “creditor” may initiate winding up proceedings.
Debt Recovery - The Common Stages
Date: September 24, 2008
Author(s): Adrian Culas LL.B. (Hons.), CLP.
Debt Recovery - The effects of being served with a Creditors Statutory Demand
Date: March 07, 2009
Author(s): LAC Lawyers
A Creditors Statutory Demand is a statutory mechanism under the Corporations Act 2001 allowing a creditor to exercise its right to demand payment from a debtor without the need to commence legal proceedings.
Debt Recovery from a Debtor's point of view - Part 1
Date: June 29, 2008
Author(s): LAC Lawyers
In Brief - The Steps Involved in Commencing and Running a Civil Action
Date: March 15, 2010
Author(s): Pheba Netto LL.B. (Hons)
A brief rundown of the steps involved in running a cicil action. For more information fill free to call LAC Lawyers on 1300 799 888. LAC Lawyers = RESULTS
Insolvency & Bankruptcy Law - What is Part IX and Part X under the Bankruptcy Act 1966
Date: May 10, 2010
Author(s): Pheba Netto LL.B. (Hons)
Part IX and Part X agreements under the Bankruptcy Act 1966 enable debtors to present creditors with proposals of settling debts. The payments are less than the amount of the debt itself and are paid in full and final settlement of the entire debt.
Insolvency & Bankruptcy Law - You are owed money, what should you do?
Date: May 10, 2010
Author(s): Pheba Netto LL.B. (Hons)
A creditor is someone who is owed money by and individual more often referred to as a Debtor. As a creditor there are several options available to you to recover the debt that is owed to you. The amount of money or debt owed to you will determine the method by which you are able to recover the money from the Debtor.
The Benefits of Hiring A Lawyer
Date: August 16, 2006
Author(s): LAC Lawyers
The old adage “you get what you pay for” is as true today as it has ever been.
The traps and pitfalls of Debt Recovery by a self represented litigant in the NSW Courts.
Date: March 09, 2008
Author(s): Alexandra Egan B.Ec, LL.B.
A common problem arising from the technological revolution and the deregulation of certain parts of the legal profession by the Government is the false impression given by both that the individual can seek recovery of money on their own through the court system. It seems the independence so highly sought after amongst both Generation X and Y finds individuals trying their hand at the legal process usually to their detriment.
Voluntary Administration
Date: May 04, 2008
Author(s): LAC Lawyers
If a company is having cash flow problems, unable to pay its debts as and when they fall due such as GST, superannuation or creditors then a Director must consider voluntary administration. This enables the company to avoid continuing to incur debts while it is insolvent.
What to expect when you call LAC Lawyers
Date: December 13, 2006
Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.
Why stay with your lawyer
Date: August 01, 2006
Author(s): LAC Lawyers
The lawyer/client relationship is a personal one and there are many reasons which will dictate who you can and cannot work with. If you don’t like your lawyer, should you change? Ultimately, the relationship between a lawyer and client must be built on mutual trust.