When you are facing a recalcitrant debtor, you want decisive action. Debt recovery is a process that most creditors have to go through so that they can receive the money they are owed by stubborn debtors following a verbal or written contract. This dispute is common in product or service supply chains. Bad debts and lost income are some risks that new businesses should plan for if they wish to maintain their cash-flows and meet their day to day business obligations.
Cash is King!
Outstanding amounts, unpaid invoices, and various types of debts can seriously impact the overall efficiency and productivity of any commercial business. Failure to consult an expert debt recovery lawyer on time can make you spend more than you had anticipated in your pursuit of the money you are owed. As a commercial law litigator specialising in debt recovery disputes, I can help you find a solution that can compel your debtors to settle or pay their debts quickly.
Some reasons a creditor would opt for debt recovery services is when:
There is a disagreement on the amount owed
The customer fails to pay the debt by the due date
The debtor is insolvent or bankrupt
The customer has incurred high outstanding debts
Debt Recovery Principles
As annoying and frustrating as it is to do work and not be paid, a commercial approach and a level head is needed to be successful in your debt recovery action. There are 4 principles that I think are fundamental to the best debt recovery practice:
Principle 1: “Don’t throw good money after bad”
There is no point spending $1 to recover $1
Principle 2: “The squeaky wheel gets the oil”
You need to take prompt and definitive action to get a response
Principle 3: “Can’t get blood out of a stone”
If the debtor is insolvent, you need a more specialised approach
Principle 4: “A bird in the hand is worth two in the bush”
If an offer of settlement is made consider it pragmatically.
The WYNDHAM METHOD™ will work for you.
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Outstanding debts and unpaid invoices can be recovered without resorting to litigation. We always recommend our clients to seek legal help during the early stages of a debt recovery dispute so that they can take advantage of the available cost-effective ways of recovering debts.
In most cases what the stubborn debtor needs is a telephone call or statutory demand for payment of the debt from a debt recovery lawyer. Skills and experience in negotiation, behavioural psychology and the latest negotiation techniques from Harvard Law School are some factors that set our superior negotiation skills apart from the herd. During a debt recovery negotiation process, the creditor and debtor come together and discuss their views on the outstanding debt. With us working on your case, we will ensure that you reach an agreement in your favour.
Alternative Dispute Resolution
Many debt recovery disputes are solved through “alternative dispute resolution” (ADR) methods. The ADR that is commonly used to resolve most debt recovery disputes is negotiation. If the negotiations does not result in payment, then other ADR methods may be considered. Conciliation, mediation and arbitration are some other dispute resolution methods are ideal where the value of the debt is great. At this stage, a third party may be required to help resolve the dispute. If you find yourself in this situation, feel free to call me so that we can initiate a legal debt recovery process.
Sometimes a debt recovery dispute can escalate and end up in court. In this stage of the dispute, you need to consult a commercial law litigator to help you achieve the quick, just and cheap resolution of the debt recovery dispute. As debt recovery lawyers, we are qualified by 25 years practical experience prosecuting or defending court proceedings. We are comfortable in every jurisdiction whether that is the Small Claims Division of the Local Court, Federal or Supreme or inter-state courts.
Our Debt Recovery Expertise
You do not have to worry about your outstanding debts and unpaid invoices, let us help you recover them quickly using a proven and effective approach. We have been helping businesses and individuals across Australia recover their debts and focus on their operations. We understand what works when it comes to debt recovery. If your customer requests for a set-off, we can help you maximize your recovery.
An unpaid debt and chasing down debtors to recover your lost money could be hurting your business. Knowing that you have the law on your side will help you focus your time and resources on what matters most, running your business. In every debt recovery dispute, the law gives you a variety of legal options to help you resolve your case and close the unpaid accounts. Call us for advice, guidance, and assistance on legal action.
Our duty as a commercial litigators is to provide you with the right legal advice, guidance, and assistance on how to recover unpaid debts through the most efficient and effective legal avenues. Contact us for legal help on:
Debt collection and legal action
Alternative dispute resolution (ADR)
Personal Properties Security Act 2009
Letters of demand for payment of debt
Competition and Consumer Act claims
Bankruptcy and winding-up proceedings
Drafting enforceable contracts or agreements
Credit policies, procedures, and documentation
Obtaining Mareva injunctions and freezing orders (urgent court orders)
Litigation representation (local, district, federal or supreme court procedures)
For more information on debt recovery through legal action, feel free to contact us and we can discuss further.