Our Brisbane and Gold Coast commercial litigation team are experienced in all aspects of Debt Recovery.
Our firm acts swiftly to pursue debts on behalf of our clients in a broad range of different industries. Based on this experience, we have cost effective solutions available to creditors, with a fast turn-around time, which is essential when seeking to recover monies owing to you or your business.
In the event that you wish to recover a debt, please contact our firm for a free no-obligation appraisal and quote tailored to your circumstances and desired outcome. This includes the following:
High volume debt recovery
Our solicitors use the latest technology to process high volumes of demand letters and debt claims within a twenty-four hour turnaround time to achieve the highest recovery rates and best possible outcomes. Our experience has shown that, on average, one third of debtors will make payments in response to a letter of demand, one third will make payments in response to being sued, and one third will make payments in response to an order of the Court requiring their payment of money. As such, the legal cost of pursuing high volumes of debt is proportionately lower than the cost of pursuing a single debt. Give our solicitors a call and let us show you how we can clear your aged debtor balances and keep them clear.
Letters of demand and disputed debts
It is not uncommon that disputes arise regarding a particular debt. We have experience in acting on behalf of the alleged debtor regarding a dispute over a particular debt. In the event that you are a debtor and you receive a demand or claim, you must attend to the matter urgently. In the event that a debtor does not take prompt steps to defend a claim for a debt, the Court can give judgment against them. Judgments may be enforced by winding up proceedings if the debtor is a company, or bankruptcy proceedings if the debtor is an individual.
Two of the most common reasons why debts are not paid is that creditor’s demands are not received or are easily ignored. Our solicitors can draft letters of demand that will command attention, explaining in clear terms why the debt is owed and the potentially dire financial consequences for the debtor if the creditor decides to commence proceedings against them.
If you have received a letter of demand for a debt and you dispute that the debt is owing, we have the expertise to place you in the best position to defend any debt claim.
Claims and Statements of Claim in all jurisdictions
Some experienced debtors will not respond to creditor’s demand letters or phone calls. Commencing proceedings against them and legally serving them with a claim creates a deadline for them to respond, or face the risk that the Court may give judgment against them. If a Court gives judgment against a debtor, a record of that judgment will remain on the debtor’s credit report for up to 5 years unless paid in full within the first 3 years.
Our solicitors can expertly draft creditor’s claims an ensure the claim is legally served and increase your prospects of being paid.
Statutory Demands and winding up applications
Our solicitors have substantial experience preparing and serving debtor companies with statutory demands. A statutory demand is a formal demand that can be made on a debtor company who owes a debt exceeding a statutory minimum amount (presently $20,000) and requires them to pay the debt or make an acceptable payment arrangement within a limited time (presently six (6) months).
A statutory demand can be accompanied by an order of a Court requiring the debtor company to pay the creditor the statutory minimum amount (presently $20,000), or an affidavit verifying that the company owes a debt exceeding that amount. A debtor company served with a statutory demand has a limited time to comply with it (presently six (6) months, if the statutory demand was served prior to 31 December 2020).
If the debtor company fails to comply with the statutory demand within that limited time, the debtor company will be presumed insolvent for three (3) months as a matter of law. During those three (3) months, the creditor can apply for a Court order forcing the debtor company into liquidation.
Creditors with evidence that a debtor company (among other things) is actually or presumed to be insolvent, or has suspended its business for a whole year, or has no members, can apply for a Court order forcing the debtor company into liquidation. The most common reason a debtor company is presumed to be insolvent is that it has failed to comply with a statutory demand. However, a debtor company is also presumed to be insolvent if (among other things) a secured creditor enters into possession or assumes control of their property, or the execution of a judgment against the debtor company (no matter how small the amount) is returned wholly or partly unsatisfied.
Where the debtor company is presumed to be insolvent, the onus is on the company to rebut that presumption, by proof of its solvency. It can be very complicated and expensive for a debtor company to prove its solvency; it is not enough to simply dispute its indebtedness to the creditor seeking to have it wound up.
If a debtor company is wound up, its liquidator has broad powers of investigation and can seek to set aside uncommercial transactions, unreasonable director-related transactions, and other creditor-defeating dispositions made by the debtor company.
Our solicitors have substantial experience with winding up applications and company liquidations.
Asset tracing, Enforcement of Interstate and Foreign Judgments
We are experienced at tracing assets that have either been transferred to defeat creditors or an attempt has been made to hide various assets in another jurisdiction, either within Australia or overseas. In particular, in the event that assets that have been sold or transferred to related entities then we may conduct investigations and have the resources to trace those assets.
We also have experience in tracing assets that have been moved out of the Australian jurisdiction, and have enforced Court judgments in foreign jurisdictions. In the event that you either suspect or know that assets have been removed or attempted to be removed or transferred, then you should immediately obtain advice as early as you can and take steps to protect your position.
Our debt recovery lawyers in Brisbane and Gold Coast also act for foreign solicitors seeking to enforce judgments in Australia. We are very familiar with the Court processes, and can provide proactive advice to enforce judgments in Australia.
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Meet with our team of experienced litigation lawyers on the Gold Coast or in Brisbane to gain clarity and guidance on your next steps.
Book your obligation free consultation today.