How To Recover Debt As A Creditor
Someone Owes Me Money
Unpaid debt can greatly affect a business’s cash flow. It can also weaken the stability of the business. Additionally, it has the potential to damage long-standing relationships that individuals have built with effort. Unpaid debts, whether controllable or not, can harm creditors if not dealt with quickly.
In the complex world of finance and lending, the pursuit of unpaid debts can be a daunting challenge for creditors. If someone owes you money, you need to know how to retrieve it. This applies to business owners, financial institutions, and individuals.
RCR Lawyers’ debt recovery service is efficient, focuses on maintaining relationships, and negotiates payment plans and enforcement. We are sharing our expert tips on how to recover debt.
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Someone Owes Me Money
Unpaid debt can mean big things for business cash flow, can weaken the foundations of even the most stable business and tear down longstanding relationships you’ve worked so hard to forge. Regardless of whether an unpaid debt is within or outside of a debtor’s control, it can have devastating outcomes for a creditor if it is not addressed swiftly
In the complex world of finance and lending, the pursuit of unpaid debts can be a daunting challenge for creditors. Whether you’re a business owner, a financial institution, or an individual owed money, knowing how to navigate the intricate process of debt recovery is essential.
RCR Lawyers proven debt recovery and collection service is based on working fast, maintaining business relationships, and negotiating on everything from payment plans to enforcement. We are sharing our expert tips with on how to recover debt.
Recover your debt
Steps you can take to Recover Debt
LETTER OF DEMAND
A letter from a good law firm known for collecting debts can make a slow payer start discussing payment. RCR Lawyers will take this step on your behalf once you confirm that your overdue notices have been unsuccessful.
A lawyer’s letter of demand carries more weight because they can’t send one without using their professional judgment first.
There must be a valid legal reason for it. This makes it more serious than actions from a business or debt collector.
The chances of the debtor contacting to negotiate increase a lot by taking this step. It also allows starting legal action to recover the debt.
GOING TO COURT
If you take legal action to recover the money owed to you, you can also recover the expenses and interest.
Depending on the size of the debt, it is a worthwhile investment to make.
If we don’t receive a response to our payment request letter, we can take legal action on your behalf. This involves filing a claim in court.
If the debtor does not contest the claim and file a defence within 28 days of being served with the Claim and Statement of Claim, we will apply for a Default judgment.
The Default Judgement says the debtor must pay the debt and the costs of getting the court judgment.
You can enforce this judgment within the next 12 years from the date it was made. This ensures that you can recover the debt when you choose to take action.
SIZE OF DEBT MATTERS
In Queensland the size of the debt will determine where a Claim should be made:
- For amounts less than $25,000, we will usually use Queensland Civil and Administrative Tribunal (QCAT)
- For amounts between $25,000 – $150,000 we will go to the Magistrates Court of Queensland
- For amounts between $150,000 – $750,000 we will go to the District Court of Queensland
- For amounts $750,000 and above we will go to the Supreme Court of Queensland
Steps you can take to recover debt
Letter of demand
Going to court
When you start legal proceedings to recover your debt you are able to recover the costs incurred and interest applicable.
Depending on the size of the debt, it is a worthwhile investment to make.
After we have issued a letter of demand on your behalf and if we have not received any signs of an intention to make payment we are able to file a Claim and Statement of Claim in court on your behalf.
If the debtor does not contest the claim and file a defence within 28 days of being served with the Claim and Statement of Claim, we will apply for a Default Judgement.
The Default Judgement confirms the debt is owed and the amount must be paid and will include the costs of getting the court judgment.
This judgment can be enforced at any time over the next 12 years from the date of judgment so this gives you certainty of recovering the debt if/when you decide to take enforcement.
Size of debt matters
In Queensland the size of the debt will determine where a Claim should be made:
- For amounts less than $25,000, we will usually use Queensland Civil and Administrative Tribunal (QCAT)
- For amounts between $25,000 – $150,000 we will go to the Magistrates Court of Queensland
- For amounts between $150,000 – $750,000 we will go to the District Court of Queensland
- For amounts $750,000 and above we will go to the Supreme Court of Queensland
Debt recovery enforcement options
If you don’t know the judgment debtor’s finances, we can send an examination notice to gather more information.
An examination notice is a court document. It tells the judgment debtor to fill out a financial statement and provide specific documents to the court.
The statement tells you about the judgment debtor’s money, things they own, and debts. This helps you decide what to do to make them follow the judgment.
If the person who owes money hasn’t complied with the request for examination, we can seek court permission to examine them.
An examination order requires the judgment debtor to appear in court. They must answer questions about their finances and provide the requested documents.
A writ for property levy is an order for a sheriff to take the judgment debtor’s property and sell it. The money from the sale will be given to you to pay off the debt.
To visit the house of the person who owes money, you must pay fees to the sheriff. However, you can recover the money by selling their belongings.
If the Sheriff cannot enforce the court order against the debtor, they must notify the plaintiff. The court order is for the person who owes money. The Sheriff is responsible for carrying out the court order. If they are unable to do so, they must inform the person who won the lawsuit.
A writ for levy of property is an order to have a sheriff attend the judgment debtor’s property for the purposes of seizing and selling the property, with the proceeds of sale being directed to you in payment of the judgment debt.
There are sheriff’s execution fees payable for attending the judgment debtor’s address but these costs can be recovered from the sale of goods.
If the Sheriff is not able to satisfy the writ against the judgment debtor’s goods, they are required to give notice to the judgement creditor.
If the person who owes you money is an individual, who owes you more than $10,000 you may apply to the court to make them bankrupt using what is called a creditors petition.
To succeed, you must show that the person did something that proves they are bankrupt within six months before you apply.
The ‘acts of bankruptcy’ are listed in section 40 of the Bankruptcy Act 1966.
Before becoming a creditor, make sure you have a judgment that proves someone owes you money. To learn about this step. Click here.
Once you have the judgment debt, a bankruptcy notice can be filed online.
After this, comes the crucial step of serving the bankruptcy notice. It must be done carefully, following strict procedures, and with the assistance of experts. This service allows 21 days for the person to follow the notice or they will be considered bankrupt.
After not following the rules, it’s time to submit a request to the court. If approved, the court will declare the person bankrupt.
The person will then have all their finances managed by a trustee who will investigate how to make payments to creditors. Bankruptcy is complex and stressful, whether you’re bankrupting someone or being bankrupted by someone.
Rostron Carlye Rojas lawyers are experts in handling these issues. They can safeguard your rights and interests for the best results in bankruptcy cases.
If the person who owes you money is an individual, owes you more than $10,000 you may apply to the court to make them bankrupt using what is called a creditors petition.
Succeeding in this process requires you to prove that the individual has committed an ‘act of bankruptcy’ within six months prior to your application.
The ‘acts of bankruptcy’ are listed in section 40 of the Bankruptcy Act 1966.
Prior to using a creditors position, you must ensure you have a judgement that proves the individual owes you a debt. To learn about this step. Click here.
Once you have the judgement debt, a bankruptcy notice can be filed online.
After this step is the all important step of serving the bankruptcy notice which must follow strict procedures to follow and requires careful consideration and expert help. This service will give the individual 21 days to comply with the notice or they will be found to have committed an ‘act of bankruptcy’. Following service and assuming non-compliance, it is time to file the creditors petition and if accepted the court will make a sequestration order which officially makes the person bankrupt.
The person will then have all their finances managed by a trustee who will investigate how to make payment to creditors. The process of bankruptcy is incredibly complex and stressful time no matter if you are attempting to bankrupt an individual or have someone filing to bankrupt you.
Rostron Carlye Rojas lawyers are experienced dealing with these matters and can ensure your rights are protected and best interests served to ensure the best possible outcomes of ‘bankruptcy proceedings’.
We can arrange a payment plan after sending a demand letter and getting the debtor to agree to negotiate.
You can instruct or negotiate to prepare a settlement agreement. This agreement is a contract where the debtor agrees to repay the debt as per acceptable terms.
We can create a legally binding agreement called a deed of settlement. You can use it to quickly judge if the debtor doesn’t fulfil their part of the deal. Whether you negotiate the terms yourself or have someone do it for you, we can help.
This step helps you avoid expensive legal battles and safeguard your interests. It’s a useful tool for debt recovery.
Contact us
Please contact us today to schedule a confidential consultation, and let us put our extensive experience to work for you.
We’re here to provide expert guidance and practical solutions, ensuring your business stays on the path to success.
Your peace of mind and business prosperity are our top priorities.
Call our Brisbane Team on 07 3009 8444
Call our Sydney Team on 02 9307 8900
Enquire about Recover Debt as a Creditor
"*" indicates required fields
Debt recovery enforcement options
If you aren’t sure of the judgment debtor’s finances, a useful step we can take is to issue an examination notice.
An examination notice is a court document filed with the court that requires the judgment debtor to complete a financial statement and/or produce certain documents in support.
The statement includes information as to the judgment debtor’s current income, assets and liabilities which allows you to know the best steps to take for enforcement of the judgment.
If the judgment debtor has not complied with an examination notice we can then take steps to seek an examination order.
An examination order requires that the judgment debtor attend court to answer the questions about his or her financial position and produce those documents requested in the examination notice.
Garnishee orders allow you to redirect your debtor’s wage or money they have in their bank accounts directly to pay the debt owed to you.
A garnishee order is an order from the court that directs the debtor (known as the garnishee) to pay that money to the judgment creditor via their bank account or from the debtor’s employer.
Applying for a garnishee order can be an effective initial step at recovering part or whole of the debt, but there is always the possibility that there is insufficient funds in the account to garnishee.
A writ for levy of property is an order to have a sheriff attend the judgment debtor’s property for the purposes of seizing and selling the property, with the proceeds of sale being directed to you in payment of the judgment debt.
There are sheriff’s execution fees payable for attending the judgment debtor’s address but these costs can be recovered from the sale of goods.
If the Sheriff is not able to satisfy the writ against the judgment debtor’s goods, they are required to give notice to the judgement creditor.
If you are owed money from a company or business ending in Pty Ltd then they are what is referred to as a corporate debtor and for this reason, there is a slightly different process.
To chase a corporate debtor requires serving a statutory demand letter on them outlining the debt, the steps taken to recover and the consequences should they not pay.
The correct process for service differs depending on the State or Court and the size of the debt and doing this step correctly is vital to ensuring you have a successful outcome in court.
This letter is issued under Section 459E of the Corporations Act 2001 (Cth) and is usually issued where there is no dispute that a debt is owed.
Failure to comply with the correct service process on a corporate debtor opens up a can of worms that can cause delays and an increase in legal costs which lowers the chances of the most important thing; getting paid what you are owed.
To ensure a statutory demand letter is drafted and served correctly, contact RCR Lawyers and will make sure you get paid the full amount owed by your corporate debtor.
If the person who owes you money is an individual, owes you more than $10,000 you may apply to the court to make them bankrupt using what is called a creditors petition.
Succeeding in this process requires you to prove that the individual has committed an ‘act of bankruptcy’ within six months prior to your application.
The ‘acts of bankruptcy’ are listed in section 40 of the Bankruptcy Act 1966.
Prior to using a creditors position, you must ensure you have a judgement that proves the individual owes you a debt. To learn about this step. Click here.
Once you have the judgement debt, a bankruptcy notice can be filed online.
After this step is the all important step of serving the bankruptcy notice which must follow strict procedures to follow and requires careful consideration and expert help. This service will give the individual 21 days to comply with the notice or they will be found to have committed an ‘act of bankruptcy’. Following service and assuming non-compliance, it is time to file the creditors petition and if accepted the court will make a sequestration order which officially makes the person bankrupt.
The person will then have all their finances managed by a trustee who will investigate how to make payment to creditors. The process of bankruptcy is incredibly complex and stressful time no matter if you are attempting to bankrupt an individual or have someone filing to bankrupt you.
Rostron Carlye Rojas lawyers are experienced dealing with these matters and can ensure your rights are protected and best interests served to ensure the best possible outcomes of ‘bankruptcy proceedings’.
A payment arrangement secured by deed of settlement can be achieved after we have sent a letter of demand and got the debtor to the negotiation table.
Upon instructions by you, or through your own negotiations, a deed of settlement can be prepared which becomes a binding contract that the debtor will repay the debt at terms acceptable to you.
Whether you have negotiated these terms yourself or want someone to negotiate on your behalf, we can prepare an airtight legally binding deed of settlement that can be used to get a quick default judgment in the future, should the debtor not fulfil their end of the bargain.
This step avoids costly litigation but protects your interests and should be considered a tool in your arsenal when doing debt recovery.
get your money
A payment arrangement secured by deed of settlement can be achieved after we have sent a letter of demand and got the debtor to the negotiation table.
Upon instructions by you, or through your own negotiations, a deed of settlement can be prepared which becomes a binding contract that the debtor will repay the debt at terms acceptable to you.
Whether you have negotiated these terms yourself or want someone to negotiate on your behalf, we can prepare an airtight legally binding deed of settlement that can be used to get a quick default judgment in the future, should the debtor not fulfill their end of the bargain.
This step avoids costly litigation but protects your interests and should be considered a tool in your arsenal when doing debt recovery.
To learn more or get us working on helping to recover your money, fill out the form below.
Meet our experienced team
Debt recovery
Paul Rojas
Michael Finch
Dean Alexander
Christine Kennedy
Mysa Mohannak
Lee Allen
Thomas Lane-porter
Neil Yang
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