Keep cashflow flowing by utilising Masons Lawyers’ debt collection team

Cashflow is lifeblood of any business. Often businesses can be crippled when large sums of money are owed and have not been recovered.

At Masons Lawyers we use our debt collection experience to your advantage. We deliver a letter of demand to the debtor which includes a period of time in which the debt is payable. In our experience this maximises your chance of recovery.

If payment is not made as requested in the letter of demand, Court proceedings can be immediately filed.

Once a Claim and Statement of Claim is filed by a Plaintiff in either the Magistrates, District or Supreme Court, the following timetable of steps is generally followed: 
 

1. The defendant must file a Notice of Intention to Defend and Defence with 28 days, if they do not the plaintiff may apply for default judgment; 
2. The defendant may file a Counter Claim to the plaintiff’s Claim and Statement of Claim when filing their Notice of Intention to Defend and Defence; 
3. The plaintiff may then file a Reply to the Defence of the Defendant within 14 days;
4. If the Defendant filed a Counter Claim the Plaintiff may file an Answer to the Counter Claim when filing their Reply to the Defendant’s Defence;
5. If the Plaintiff files an Answer to a Counter Claim the Defendant may then file a Reply to that Defence within 14 days;
6. Both the Plaintiff and Defendant must then disclose to the Court all of the documents and evidence that they intend to reply upon when the matter proceeds to Trial;
7. The matter will then be set down for a Directions Hearing that both parties must attend (this is generally only in Magistrates Court);
8. If the matter is not resolved at a Directions Hearing the matter will be set down for Trial;
9. Once the matter is heard at Trial a decision will be reached. That decision is called a Judgment

 
Once Judgment is entered, a number of procedures are available to enforce it. At Masons Lawyers, our debt recovery lawyers can assist you with:

• Writs (seizure of goods to sell in order to repay the debt)
• Examination Summons (requiring the debtor to attend Court to display how they will satisfy the Judgement) and
• Garnishees

• Orders (whereby the Court can order a third party to pay money to a creditor instead of a debtor).

If an individual is declared bankrupt by the Courts, a Trustee is appointed to take control of the insolvent person’s estate in order to turn the assets into cash to distribute 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). Bankruptcy proceedings are handled in either the Federal Court or the Federal Magistrates Court, depending on the complexity.

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. The creditor and the liquidator firstly recover their costs, followed by certain entitlements to employees. The balance is distributed among unsecured creditors. Winding up proceedings are handled in either the Supreme Court or the Federal Court. Masons Lawyers can assist you by filing an Originating Process. If the Court is satisfied that the company is trading insolvent, it can then appoint a liquidator.

If you need assistance in recovering a debt please complete our online debt recovery enquiry or contact Craig Mason at Masons Lawyers.

Craig Mason
Director
Masons Lawyers Brisbane

Our experience is your advantage.