If you are owed money by a debtor, there are a number of steps you can take to try and recover the amount owed to you.
The first step in recovering a debt is to contact the debtor (in writing) and notify them of the debt. This can be done informally (without a lawyer), however in most cases you will need to send a formal letter of demand. The letter of demand should set out the background of the debt and the timeframe for the debt to be paid and the implications if this timeframe is not adhered to, specifically:
- Details of any agreement, purchase order and instructions by the debtor;
- Details of the debt, including any invoices and the scope of work performed;
- Setting a date for payment and informing the debtor that legal action will be commenced if payment is not received by that date.
If the debtor does not respond to the letter of demand or refuses to pay, the next step will be to pursue the debt through the Courts. Which Court will depend on the amount of the debt.
Our lawyers at Dwyer Durack can assist you with the Court debt recovery process to ensure that:
- Proceedings are commenced within the correct time limits;
- Proceedings are commenced in the correct Court;
- You have correctly established the legal basis for your claim;
- You comply with the ongoing strict Court timeframes in preparing relevant documentation.
If you obtain judgment against the debtor, you will have a right to enforce payment of the judgment debt for six years after a judgement is obtained.
At Dwyer Durack, our lawyers have extensive experience in debt recovery and have successfully handled debt recovery action in all Courts in Western Australia for the recovery of the full range of debts in a timely, commercially sensible and cost-effective way. If you are owed money by a debtor, please contact us so that we can assist you today.