Keeping control of your cash flow
As a business, it is essential that you keep on top of your cash flow and ensure that you do not have significant amounts of outstanding debtors.
However, it is inevitable that from time to time your debtors may not necessarily be able to or will not agree to pay.
Here at Bell Legal Group, we can provide you with the most economical and commercial advice in relation to recovering your debts in a timely fashion.
Below is a summary of some of the tools you may consider in your debt recovery process:
Often, the first step in recovering a debt is a letter form a lawyer which may put pressure on your debtor to pay. This is the most economical way to proceed and our lawyers have the skills and experience to continue to communicate with that debtor to see the debt owed to you paid.
However sometimes, it may be necessary to escalate your matter.
Creditor’s Statutory Demands and Bankruptcy Notices
If you have a debt owing to you over $2,000 by a company and there is no genuine dispute or offsetting claim, you could consider issuing a creditor’s statutory demand to the debtor.
If this is not complied with (or set aside) within 21 days of service, the company will be presumed insolvent and can be wound up if it is insolvent.
If it is an individual debtor that you have a court judgment against, you can also consider issuing a bankruptcy notice which has a similar effect, which will allow you to seek the bankruptcy of the debtor if the notice is not complied with within 21 days.
Is your debt a secured debt? If so, and if your contracts allow for it, you may be able to appoint a receiver to the debtor to protect the asset over which security is granted and to then recover your debt.
Sometimes it is necessary to issue debt recovery proceedings. We act in many courts and tribunals including QCAT, Magistrates Court, District Court, Supreme Court and the Federal Courts.
We also act interstate so the location of your debtor will not be a problem for us.
We have a number of matters currently running in Victoria and New South Wales and have acted before in South Australia, the ACT and Western Australia.
You may decide to take the ultimate step of bankrupting the individual or applying to the court to wind up the company.