If you have provided goods or services to a customer and they are refusing to pay up then it’s time to explore your options. There are different procedures that can assist with following up a debt. Platinum Lawyers in Sydney has experienced debt recovery lawyers that can provide advice and help you take action. Here’s how a lawyer can assist you with your debt recovery.
Letter of Demand
The first step you should take is to send a letter to your debtor clearly outlining the debt and demanding payment within a certain timeframe. This is known as a ‘Letter Of Demand’ and should be written by a lawyer. The aim of the letter of demand is to advise the debtor that you will be undertaking legal proceedings if they do not settle the debt. It also gives them one last opportunity to pay. If the matter goes to court the letter of demand can be used as evidence that you made every attempt to resolve the debt. If you are not happy with the response or do not receive a response at all then you can start legal proceedings. If the debtor makes contact and organises a payment plan this should be put into writing.
Determining if You Should Go To Court
It’s frustrating as an individual or a business to be owed money. However, you should weigh up if it is worth going through the courts to recover the debt. Some factors include how much the debt is, if the debtor has the capacity to pay and if there is a genuine dispute over the debt. To go through the courts you will need to ensure you have strong evidence and start legal proceedings within a certain timeframe. Discuss your case with an experienced lawyer such as Platinum Lawyers to help you decide if it’s worth pursuing.
To go through debt recovery proceedings you will need to have some details about the debtor. If they are operating under a business name you need to search for the owner through the Australian Securities and Investments Commission (ASIC) Business Names Register. If your debtor is a company you will need to find out their Australian Company Number (ACN). You will also need to obtain an address of their registered office so that a Statement of Claim can be served. Make sure they have not gone into liquidation. Once you have these details you will need to find out which court you should go through.
Small Claims Procedure
When the debt is under $100,000 you can go through the Magistrates Court Civil Division. If you have larger debts owed to you they should be claimed in the District Court. If a company is then unable to pay it will be taken to the Supreme Court. A lawyer can help with the process no matter how big or small the amount is.
For assistance with debt recovery proceedings contact Platinum Lawyers. We have a team of professional lawyers with extensive experience in this area of the law.
Contact Platinum Lawyers at (02) 8084 2764 and make a well informed decision about your debt recovery problems.