A Simple Guide To Debt Recovery
Few things are more frustrating than having someone owe you money and simply refuse to pay. Whether it’s a personal loan that’s gone unrepaid, a commercial transaction that’s been ignored, unpaid invoices for goods and services, or compensation for property damage, unpaid debts can strain relationships and threaten your financial stability. The good news is that you don’t have to accept this situation—there are legal pathways to recover what’s rightfully yours.
Letter of Demand Process
If there has been communication between you and the debtor and the debt remains unrecoverable, issuing a Letter of Demand is a great way to alert the debtor that you are serious about the debt. It is useful to have a lawyer assist you in preparing the Letter of Demand on the firm’s letterhead as it shows you are serious about recovering the debt. The debtor will hopefully contact you or the lawyers and attend to payment of the outstanding amount.
Should there not be a response from the debtor and the debt is under $10,000, an option is to commence proceedings in the Small Claims Tribunal of the Local Court.
Court Process
1. Statement of Claim
The initial step is to issue a Statement of Claim.
2. Pre-Trial Review (PTR)
Should the matter be defended, a Pre-Trial Review (PTR) date will be listed. Both parties attend Court and appear before the Registrar. At the PTR, the Registrar will set the matter down for an Assessment Hearing and the matter will then be heard before the Magistrate.
3. Assessment Hearing
Matters are usually listed two months from the date of the PTR unless requested by the parties otherwise. Evidence by way of written statements is to be filed with the Court and served on the other party two weeks prior to the hearing date. At the hearing, the Magistrate will listen to submissions from both parties and make his determination on the same day.
Resolution Options
Parties can attempt to resolve the matter between them at any stage throughout the court process even leading up to the date of the hearing.
The overriding purpose of matters heard in the Local Court is to facilitate the just, quick and cheap resolution of the real issues of the proceedings.
For small business and personal dealings debt recovery, contact PK Simpson today.