Debt Recovery
Letters of demand, statutory demands under section 459E of the Corporations Act, Local Court and District Court recovery proceedings.
Recovering Business Debts
Most debts that are going to be paid are paid in response to a properly drafted letter of demand. The next steps depend on whether the debtor is a company or an individual, the amount in dispute and whether there is any genuine reason for non payment. We take a commercial view and only escalate where it is likely to produce a result.
Reviewing the Contract, Invoice and Payment Terms
Before any demand is sent, we check the underlying contract and invoicing to confirm the debt is properly owed and that there is no genuine dispute that would undermine recovery action.
Letters of Demand
A clear, properly framed letter of demand states the amount owed, the basis for the claim and the consequences of non payment. It is often the most cost effective step in the entire process.
Escalating the Recovery Process
Settlement and Payment Plans
Where a debtor is willing but unable to pay in full immediately, a documented payment plan can secure recovery without the cost of proceedings, provided it is properly drafted and enforceable if it is broken.
Statutory Demands
Where a company owes an undisputed debt, a statutory demand under section 459E of the Corporations Act can be an effective pressure point, since failure to comply within 21 days creates a presumption of insolvency.
Court Proceedings and Enforcement
Where a demand does not produce payment, proceedings can be commenced in the Local Court for debts up to $100,000 or the District Court for larger claims. Once judgment is obtained, we advise on garnishee orders, writs and other enforcement mechanisms.
Is Recovery Commercially Worthwhile?
Before proceedings are filed, we do a realistic check on whether the debtor actually has assets worth pursuing, so good money is not spent chasing a debt that cannot practically be recovered.
Our process
How a matter of this kind moves from first contact to outcome.
Review the Debt
We confirm the debt is properly owed and check for any genuine dispute.
Letter of Demand
We send a clear demand setting out the amount owed and the consequences of non payment.
Negotiation
We negotiate payment or a payment plan where the debtor responds.
Court Proceedings
We commence proceedings in the appropriate court if payment is not made.
Judgment
We obtain judgment, by default or after a hearing where the claim is defended.
Enforcement
We enforce judgment through garnishee orders, writs or other recovery steps.
How Shah & Co Lawyers can assist
We escalate only where it is likely to actually produce payment, so costs stay proportionate to the debt.
Letters of Demand
Demands for liquidated and contested debts.
Statutory Demands
Statutory demands under section 459E of the Corporations Act against companies.
Court Proceedings
Local and District Court recovery proceedings.
Judgment Enforcement
Garnishee orders, writs and other enforcement action.
Payment Plan Negotiation
Negotiating and documenting commercial settlement arrangements.
Recovery Assessment
A realistic check on the debtor's assets before proceedings are commenced.
Frequently asked questions
General information only. Every matter turns on its own facts.
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Drafting bespoke commercial agreements that reflect how the deal actually works and protect your position if things change.
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Reviewing commercial contracts before signing, flagging risk allocation issues, unfair terms and points that should be negotiated.
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Oppression proceedings under section 232 of the Corporations Act, deadlocks, share buy-outs and exit arrangements.
Learn moreGet your debt recovery moving with a proper letter of demand.
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