Are you owed money that you would like to collect?
When you’re in business the most important thing is your businesses cash flow. Debtors who simply won’t pay can seriously impact the viability of your business. If you’ve tried and tried to compel payment but have been unsuccessful, you can take legal action to recover the debt and in certain situations, you can also recover a portion of your legal costs related to recovery proceedings.
Catchpole Legal can assist you with:
- Preliminary letters of demand;
- Preparing a Complaint/Writ and Statement of Claim depending on the jurisdiction; and with
- Applying for judgment in default of defence if no defence is filed and served within the requisite time.
Once judgment is entered, a number of procedures are available to enforce the judgment. Our solicitors can assist you with Warrants (seizure of goods to sell in order to repay the debt), Summons’ for Oral Examination (requiring the debtor to attend Court to provide their full asset position under oath), and Garnishee Orders (whereby the Court can order a third party to pay money to a creditor instead of a debtor).
If the above methods are not yielding results or are inappropriate in the given circumstances, then either applying to bankrupt an individual or wind-up a company is the best course of action.
If an individual is declared bankrupt by the Court, a Trustee in Bankruptcy is appointed to take control of that person’s bankrupt estate in order to realise the bankrupt’c assets and to distribute the money equally among unsecured creditors (those who do not hold security for payment of the debt). Secured creditors may commence debt recovery by disposing of the asset securing the loan (e.g. a bank would do this if mortgage payments are not made on a house).
When a company is declared insolvent the Court has the power to wind it up and appoint a Liquidator, whose responsibility is to turn the assets into cash and distribute it in the order set out in the Corporations Act 2001 (C’th). The creditor and the liquidator firstly recover their costs, followed by certain entitlements to employees. The balance is distributed among unsecured creditors.
Contact us to arrange a consultation with one of our solicitors in Alphington, Brunswick or at your home or office.