Debt recovery may seem like a daunting task for some – how do you recover owed debts? What if they refuse to pay? How can I secure payment for an outstanding amount? Well, there are a number of things a person or business needs to know before beginning the process of recovering an owed debt.

A claim for a sum under $10,000.00 will be lodged with the Small Claims Division of the Local Court, whereas an amount over $10,000.00 is lodged in the General Division. Before any legal action can be taken in recovering a debt, a Letter of Demand needs to be sent to the debtor. What is a Letter of Demand, you ask?

A Letter of Demand (or LOD) is a letter which advises the person or company of the amount outstanding and that the money is still owed. A Letter of Demand should include how much is owed and attach the outstanding tax invoice or at least a description of why the funds are owed, how payment is to be made and a deadline for payment.  It may contain notice to the debtor that this is the final step before you instigate legal proceedings.

Now there can be two outcomes to issuing an LOD; the debtor will realise that they owe you money and pay it back within due course; or it will be ignored. In the latter case, this is where the legal system can assist you.

Jays Claims Management understands the time expended and angst that is caused by having to chase debts from existing clients. We offer a professional service that provides a degree of separation, so as to take the burden of recuperating debt and allow our clients to focus on what they do best.

Our team has extensive experience in the process escalating debt recovery to litigation through our close association with Goldrick Farrell Mullan Solicitors.

We understand the importance of minimising costs, inclusive of legal costs, particularly when recovering outstanding invoices.

Jays Claims will guide you through what can be an incredibly difficult process and prepare you with all the services required in order to obtain any outstanding moneys.

For more information, contact Mitchell King at 02 9266 0211 or email us at jays@jaysclaims.com.au.

The above article is intended for information purposes only and is not intended as legal advice.  If you have any issues in relation to your debt recovery we recommend that you seek legal advice.