Debt Recovery
Getting paid, at the lowest cost that works
Unpaid invoices, loans and rent, recovered in the right order: a demand that gets a response, a statutory demand where it applies, and court only where the money justifies it.
What we do
Recovery, step by step
Most debts are paid after the first properly drafted letter, because the debtor can see that the next step is real. The skill is in choosing the next step that fits the debt: the amount, who owes it, whether they can pay, and whether there is any security to fall back on.
First step
A letter that gets paid
Most debts are recovered at the demand stage, with the right letter from the right firm.
Companies
Statutory demands
A 21-day clock for company debtors, used carefully.
Enforcement
From judgment to money
Warrants, garnishees and examinations, where they are worth it.
01
Letter of demand
The first step, and often the last one needed
A letter of demand from a law firm sets out the debt, the basis for it, the deadline and what happens next. Most are paid or negotiated at this point. We draft it to be taken seriously and to put you in the right position for the step after it if it is ignored.
- Trade debts and unpaid invoices
- Loans to individuals and businesses
- Rent and outgoings under a lease
- Debts under a franchise or supply agreement
02
Statutory demand
For debts owed by a company
Where the debtor is a company and the debt is not genuinely disputed, a statutory demand under the Corporations Act gives the company twenty-one days to pay or apply to set it aside. If it does neither, it is presumed insolvent and can be wound up. It is a powerful tool and a precise one; a defective demand is set aside with costs against you, so it has to be done correctly.
03
Court proceedings
When the debt is worth suing for
A claim in the Magistrates’ Court, the County Court or the Supreme Court depending on the amount, with default judgment where the debtor does not respond. We tell you before you start what it is likely to cost and how long it is likely to take, so that the decision to sue is a commercial one.
- Which court, and what it costs to get there
- Default judgment where the debtor does not defend
- Defended claims and settlement
- Judgment interest and costs
04
Enforcement
A judgment is a piece of paper until it is enforced
Getting judgment is the middle of the process, not the end. Enforcement means a warrant over the debtor’s goods, a garnishee order against their wages or bank account, a charge over their property, or bankruptcy and winding up where the debt is large enough. We choose the method the debtor’s circumstances make effective.
05
Security and prevention
Making the next debt easier to recover
The debts that are recovered quickly are the ones where the creditor held security: a personal guarantee from the director, a registered interest over the goods supplied, a charge in the trading terms. We review your credit application, terms of trade and guarantees so that the next unpaid invoice is a smaller problem.
How we work
Three steps
01
Send us the invoice, contract and correspondence
We assess the debt, the debtor and the prospects, and quote the first step.
02
A demand, with a deadline
Drafted for the particular debt and debtor, and followed up.
03
The next step only if it is needed
Statutory demand, court or enforcement, each quoted before it starts and only where the money justifies it.
Who you will work with
Consultant Lawyer
Damian Bourke
A lawyer, nationally accredited mediator and family dispute resolution practitioner, with thirty years in property development and finance and earlier work as a building surveyor and inspector. Damian has sat on the client’s side of complex deals and brings both commercial judgment and steadiness to a hard matter.
Special Counsel
Rebecca McAllum
More than ten years across litigation, corporate and commercial law and regulatory matters, with a Bachelor of Laws (Hons) from Auckland and a Masters from Oxford. Rebecca is known for clear, strategic advice and for finding the practical outcome in a complex dispute.
Client feedback
Voices of excellence
Live rating and reviews from the firm’s Google Business Profile.
Common questions
Debt recovery questions, answered
Is it worth chasing a small debt?
Often the letter of demand alone is worth it, because it is low cost and frequently works. Beyond that, we are honest about where the cost of recovery would exceed the debt. A credit control process that prevents the next one is usually the better investment.
What is a statutory demand?
A formal demand served on a company for a debt of at least the statutory minimum. The company has twenty-one days to pay, secure the debt or apply to the court to set the demand aside. Failure to respond creates a presumption of insolvency. It cannot be used for a debt that is genuinely disputed.
The debtor has gone quiet. What are my options?
Silence after a demand usually means court or a statutory demand, depending on who the debtor is. Before that, we check whether there is any security to enforce and whether the debtor has assets worth pursuing, because a judgment against a company with nothing in it is a cost, not a recovery.
Can I charge interest and recover my legal costs?
Interest can be claimed where the contract provides for it, and at the court rate on a judgment. Legal costs are recoverable in part under court rules, and in full where the terms of trade or guarantee provide for it, which is one reason to have those documents reviewed.
Also relevant
Related services
Related reading
Debt Recovery reading
Articles and briefings from the firm on this area. Plain English, no lecture.
Next step
Owed money and tired of waiting?
Send us the invoice and the correspondence and we will tell you the next step and what it costs.