A Step By Step Guide On Debt Recovery Laws In Australia

May 11, 2021    propertylawyersperthwide
A Step By Step Guide On Debt Recovery Laws In Australia

After you have provided services and products to a business and haven’t paid for it, it results in unpaid debts. The procedure to recover the debts by preparing a contract under the guidance of Debt recovery lawyers Perth through email, letters, personal contract, and phone calls is known as debt recovery. Business owners or service providers get engaged in a debt recovery action when they do not receive their money on time. Every action in debt recovery is regulated by Australian Competition and Consumer law. 

Why It Occurs? 

If a person is not paying for the service or products being purchased, it is called default. Businesses or people can default for several reasons, like cash flow issues, insolvency, feeling aggrieved, simply ignoring it, etc. In this instance, it is essential to take a realistic and fair approach to retract your money. In many cases, people being honest will meet the obligations while others do act fraudulently. 

The Step By Step Process Involved In The Debt Collection 

Do you wish to recover the debt owed to you? Of course, who does not want to get their money back, and to do that, it is always better to get engaged with a debt recovery solicitor. Specialized lawyers in debt recovery can assist the collection from the start to the end to ensure you recover the amount. To help you understand how the process goes, take a look here. 

  • Letter Of Demand 

It is issued to a business or an individual and is a final document. It includes the details of the final demands for paying the outstanding amount. When a debtor receives a letter of demand from you, it means you are in the process to take legal action if the payment does not receive on time. According to the law, seven days timeframe is given to everyone receiving the notice to the response.

 It is the last stage of going ahead with a court case. That’s why you have sent a reminder for the payment and tried to contact the concerned person over the phone or email. In the entire process, it is always better to be in touch with a Professional lawyer to assist you on what action should be taken. 

  • Statement Of Claim 

Following the above step, the next is debt collection and to do that, you have to lodge a Statement of Claim. A licensed and certified lawyer will file this in court on your behalf. After this, the dispute has entered the legal system officially, and both parties will be notified about the hearing date. The objective behind this is to present the information of the debt that the company owes you. It also includes proofs supporting your claim, being prepared and submitted, and other details. If the borrower wants to settle at this stage, they can ask for the withdrawal. As a result, it will help both parties to avoid visiting a court. In case they do not respond, it will proceed to the next judgement. 

  • Judgement 

After it has been found that the dispute has to proceed. Both parties need to submit the documentation of the case and the related details at the earliest. They will also be asked to submit things, like bank records, phone details, etc. It will go through a preliminary trial and an informal setting where the defendant, plaintiff, and legal representatives resolve the dispute. It is done in the presence of a third party to come to an unbiased conclusion. Trials can be expensive and lengthy, and if no one reaches a solution, they will reach the court. The trials go on for more than a year, and whatever the decision is, your lawyer will inform you. 

  • Enforcement 

After the case reaches the court, now it can either be in the defendant’s or the plaintiff’s favour. To ensure it turns into your favour, you have to prepare a strong case. It should have enough pieces of evidence, so the judge decides in your favour. If the debtor has violated or ignored the proceedings, the creditor has a chance to enforce the final judgement. It can be done at any point in time when the case is still active. In this way, you can receive your money stuck for so many years. While following the process, you must always speak to the best property lawyer who has resolved many cases before. In the end, whatever is the court’s decision, everyone has to stick to it without fail. 

Final Thoughts 
Speaking with property dispute lawyers Perth for comprehensive advice on how to proceed with recovering your debts is the first step you must take. They have the experience to work with every size of the debt and offer a solution to debt recovery needs.

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