Debt Recovery – should you see a lawyer?

Well, not at first. You should be exhausting all your own efforts to recover the debt including revisiting your business terms and conditions, contacting the debtor (some people are forgetful) and perhaps even issuing your own letter of demand, however, there are times when this process becomes too time-consuming and frustrating not to mention damaging to business relationships and reputations.  You should be concentrating on growing your business and cashflow and if a recalcitrant debtor is taking up just too much air, then you should consider engaging a solicitor.

At Lara Legal, we will take you through the debt recovery process, your options and provide you with an estimate of costs associated with the various steps in the process.

If you wish to contain the process and costs associated with debt recovery, you can choose to proceed on a step-by-step basis, which is helpful in the early stages when it is not unusual for a debtor, who has previously been difficult, to pay in response to a  lawyer’s letter of demand or a phone call from a solicitors office.

If there is no resolution, then further action will be discussed including the making of a claim in Court, exploring the different paths to obtaining a judgment and enforcement proceedings.

In Queensland, the amount of the debt will determine in which Court a money claim should be lodged:

• QCAT                          Up to $25,000.00
• Magistrates Court       $25,000.00 to $150,000.00
• District Court               $150,000.00 to $750,00.00
• Supreme Court           In excess of $750,000.00

If you would like to enquire further about your debt recovery needs, we welcome you to call our office on 0415 263345 or email: bernadette@laralegal.com.au.