We can help you get paid!
Chasing debtors without success?
Reluctant to engage a debt recovery or mercantile agency?
AH Lawyers can assist you to recover a commercial or personal debt. Whether it is a single debt matter or a group of outstanding invoices, we are here to help.
Letters of Demand
We recommend starting your debt recovery matter with a letter of demand from our office. A 7-day letter of demand from a lawyer’s office often gets a response from the debtor.
For a typical commercial liquidated debt demand letter AH Lawyers charge a fixed fee of $130.00 plus GST. Should the matter be complex (verbal agreements, etc.), our costs for the initial demand letter will vary between $250.00 and $500.00 plus GST.
Any subsequent correspondence or negotiation of a payment settlement will be billed at our hourly rates which range between $300.00 and $525.00 (plus GST) per hour. We will provide our estimate of fees for the required works for your consideration prior to our office undertaking any further action.
Instalment Payment Plans
The debtor may propose to make payment over time. AH Lawyers can negotiate and draft an enforceable agreement with the debtor. Our office may monitor payment under the agreement, or you may choose to monitor the agreement and advise our office of any issue.
No Payment? Time to Litigate
If your debt recovery efforts and the letter of demand do not result in payment, the next step is to commence court proceedings by way of statement of claim.
For straightforward commercial liquidated debts under $50,000.00, AH Lawyers will prepare the claim at the court fixed scale of costs amount plus disbursements (filing fee, search fees and process server). The scale costs are included as part of the claim and are recoverable from the debtor.
The fixed scale of costs amount varies depending on the amount of the claim. AH Lawyers will provide its estimate of fees prior to commencing any works on your behalf.
Default Judgment
Should the debtor fail to file a defence, default judgment may be obtained against them. Costs of preparing the application for default judgment is fixed in accordance with the court scale which is recoverable from the defendant debtor.
Enforcement of Judgment
A judgment debt is automatically listed on the debtor’s credit record affecting the debtor’s ability to obtain credit.
Legislation provides the judgement creditor with the ability to discover the debtor’s financial details including what assets the debtor owns.
There are a number of court ordered ways to direct payment from the debtor – from the redirection of earnings and the sale of assets to winding up or bankrupting the debtor.
Defended Claims
Should the debtor serve a Defence in response to the claim, AH Lawyers will provide you with advice regarding your next steps and our estimated costs.
Receipt of a Defence does not necessarily mean that the matter will proceed to trial as there are opportunities for the parties to reach a commercial settlement throughout the matter.
AH Lawyers can help you get what’s owed to you. Contact our office for an appointment with our Commercial Lawyers.
Stay tuned for our next topic on lending money and entering into a loan agreement that provides for security.