If you are engaging a Sunshine Coast debt recovery lawyer, then there are some things that you should be aware of.
Understanding of the process of recovering a debt is as vital as where you turn to for assistance in order to recover the debt owed to you.
While there are a couple of options such as debt collectors and debt collection agencies, engaging the services of a professional debt recovery solicitor (do this as early as possible!) is always best practice.
Debt recovery is a specialised area so when you engage a solicitor, who will disclose cost and steps, to recover your outstanding debt can assist from start to finish, not just in the early stages of recovery.
Furthermore, engaging a Sunshine Coast debt recovery lawyer may save you the initial costs of a debt collector who will charge a commission based on the dollar amount of the debt owed even if they do not recovery the debt in most cases.
Below is the four step processes of debt recovery with a specialised Sunshine Coast debt recovery lawyer which may give you a better understanding of the stages to recover the outstanding amount owed to you. Click for a referral.
Letter of Demand
This is a formal document issued to the individual or business owing the outstanding amount, as a final demand for payment.
The letter of demand indicates to the debtor that you are now willing to take legal action usually 7 days after the date issued if the amount is not settled within a timely manner.
This is the first step in seeking recovery via a legal professional, before pursuing the matter in the courts and it is very important that prior to this step you have attempted to contact the debtor with reminders via phone, email and or standard post with no success.
Debt collectors and mercantile agents will at this stage not be able to assist as the next stages of the recovery process will need the support of a legal profession.
Using the services of a Sunshine Coast solicitor who specialises in this process will also show the debtor that you are committed to recovering the outstanding money.
Commence Debt Recovery Proceedings
If the Letter of Demand has had no response from the debtor the next step is for the licenced solicitor to lodge a Statement of Claim.
The Statement of Claim is a legal document prepared and filed in court by the solicitor, filing this document enters the dispute into the legal system where the case will be scheduled for a hearing.
The Statement of Claim is intended to show the courts the reason you are taking legal action by outing the details of the debt owed to you including any proof that will support your claim.
The indebted party (known legally as ‘the defendant’), is severed by the court after the document has been prepared and submitted by the solicitor. The defendant is required to respond within the stated time frame usually 28 days.
Should the defendant make contact to pay or settle at this point, they can request the withdrawal of the Statement of Claim, thus allowing both parties to avoid a court case. On the other hand, if they do not respond, or refuse to settle the debt the matter will proceed through the court for a judgement.
Obtaining a Judgment
The court will require evidence from both parties when it is established the dispute will be proceeding, each party will submit all documentation that is relevant to the case supporting the claim or defence. If required the court can issue a subpoena related documentation including phone and bank records.
In the preliminary stages of the trail there will be mediation conducted in an informal setting where a unbiased third-party adjudicator, will together with the plaintiff, defendant and their legal representatives attempt to resolve the matter without the court.
If an agreement by both parties cannot be made during the mediation, the matter is then processed to a court hearing.
During the court hearing both parties will again be required to show evidence to prove their claim, after hearing all arguments and assessing the evidence a judgement is the delivered.
A resolution during mediation to avoid a lengthy and often costly trail is strong encouraged, as the judgement can take a year or more to be reached by the courts, once the decision has been made the solicitors involved are notified.
Enforcement of Money Order
This action is undertaken of enforcing the original judgement is done by the creditor if the defendant violates the courts order requiring them to pay the amount due.
Enforcing the judgement any time within twelve years from the judgement date.
Options available to creditors for enforcing court ordered judgements change depending on state/territory:
Examination Enforcement Hearing
This option sees the plaintiff providing the courts with evidence of their financial position, this is used to asses an effective recovery of the amount outstanding.
Redirection of Debts / Earnings
Using this court order means the creditor is paid directly from the debtor’s income or bank accounts.
Warrant for Seizure and Sale of Property
This court order will require the seizure and sale of the debtor’s property to pay off the debt, this is done by a bailiff.
Starting the process of collecting outstanding debt(s) can be time-consuming and frustrating if you do it yourself.
Seeking the help from a Sunshine Coast debt recovery lawyer ensures start to finish support of the debt recovery process.
Get a referral to the best debt recovery lawyers on the Sunshine Coast here.