Debt Recovery
The Debt Recovery Process
The debtor fails to pay the creditor on time
- The creditor attempts to recover the debt by communicating with the debtor (phone calls, emails, etc)
- The creditor sends the debtor a formal letter threatening “legal action” if the debt is not paid within a given time limit
- The creditor takes “legal action” by contacting a debt recovery law firm, like YFX Lawyers and instructs us to proceed
- We send our ‘letter of demand’ advising the debtor that legal proceedings will commence if the debt is not paid in full within a given time limit (7, 14 or 21 days)
- The debt enforcement process begins…by way of Statement of Claim or Summons
Our Debt Recovery Legal Services
Letters of Demand
Commencing proceedings in the NSW Civil Administrative Tribunal (NCAT), Local Court, District Court and Supreme Court
Settling matters by way of alternative dispute resolution processes
Drafting and enforcing Deeds of Release and security enforcement documentation
Obtaining and enforcing judgements by way of writs, instalment orders, garnishment, bankruptcy and corporate insolvency solutions
Advising in preference recovery disputes and insolvent transactions
Assisting you in the recovery of your assets including obtaining urgent court orders (Mareva Injunctions)
Advising you on your risk and liabilities in your business transactions
Assisting you and your business by drafting agreements to minimise the need for debt recovery actions
For more information, please contact YFX Lawyers on (02) 8677 5386 or ring to make an appointment with our office.
Statement of Claim or Summons
The litigation process is formally commenced with what is known as the originating process. This is either a Statement of Claim or a Summons.
Depending on the value of the claim (i.e. how much is being sought) and what orders and remedies are being sought from the judge, the claim may go to a Tribunal (such as the Consumer Trader Tenancy Tribunal) or a Court (either the Local, District or Supreme Courts).
The originating process (Statement of Claim or Summons) will have what are known as pleadings, and these are separated into individual paragraphs so that the claim can be understood clearly.
The pleadings will set out the cause of action, which is the right under which the litigant is suing the other party in the dispute.
Drafting the Statement of Claim or Summons in commercial litigation matters must be completed with a very high level of detail and caution. Care must be taken so that no admission is made and so that no rights are waivered.
Proper legal advice must be obtained from a civil or commercial litigator with experience in dealing with the type of claims and disputes, so that once the claim is filed, the case can be prosecuted efficiently and economically.
Responding to a Statement of Claim or Summons?
Responding to a Statement of Claim or Summons?
Filing a Defence
You can defend a statement of claim if you believe you don’t owe all or part of the claim. To defend the claim you must file a document called a defence. A defence confirms that you deny some or all of the claim and the reasons why. These reasons are called the grounds of your defence. You must file the defence form at the same court where the statement of claim was filed within 28 days of being served with the statement of claim otherwise the plaintiff can apply for a default judgment against you.
Filing a Cross-Claim
If you believe that the plaintiff owes you money or has your goods, you may be able to file a claim against the plaintiff. This is called a cross-claim. Filing a cross-claim form can make a case more complicated and lead to higher costs. Before filing a cross-claim form, you should obtain legal advice from
What if you do nothing?
You should not ignore a statement of claim! If you do not take action within 28 days the plaintiff may get a default judgment against you without you attending court or being notified. The default judgment can then be enforced. Having a judgment against you may also affect your credit rating.
For more information, please contact YFX Lawyers on (02) 8677 5386 or ring to make an appointment with our office.