Small Claims and Local Court Debt Recovery
Recovering money from debtors can be a frustrating process, especially when trying to balance recovering what you what are owed with maintaining a personal or business relationship with the debtor. It is often the unfortunate outcome, that small businesses are forced to resort to legal action to ensure their debts are paid.
Insufficient resources, time and legal expertise are major obstacles in the way of most small businesses, when trying to recover money owed to them. Chasing debtors is often a drain on the operation of a business, and can affect the day-to-day running.
To assist in recovering what you or your business may be owed, a Letter of Demand to the Debtor is usually sent as soon as the debt becomes apparent, or it becomes clear the debtor is ignoring the debt. This letter details the amount owed, the time in which the debtor must pay, and that if the debt remains unpaid, the Creditor (you) will commence legal action in the appropriate Court to recover the debt.
If the debt remains unpaid, you can prepare, file and serve a Statement of Claim, setting out what is owed and why.
If the Debtor does not file a Defence within 28 days of service of the Statement of Claim, you can enter Judgment against the debtor.
Once Judgment is entered, you can enforce the Judgment a number of ways, such as:
- Writs (seizure of goods),
- Examination Summons; and
- Garnishee Orders.
For assistance in solving your debtor issues, please contact our office.