Debt Recovery

Does someone owe you money?

What is a debt?

A debt can arise in multiple ways, such as:

  • Loan.
  • Gift.
  • Contacts.
  • Work performed.

If someone owes you money you can make a claim for that money by asking them to repay the money owed to you. This claim can be made by calling the debtor, sending an email or SMS, or writing the debtor a letter.

A common process to recover debt is to send a ‘letter of demand’ to the person or entity that owes you the money.

The debtor may then pay the debt, deny the debt, or ignore the debt. This can cause a stressful and confronting situation for yourself, especially if the debtor chooses to be unreasonable in negotiating with you or simply chooses to ignore the debt. If this occurs, the options available to you are restricted, you may either continue to chase the debtor with letters, phone calls and emails or you may wish to go to court.

Which court do I go to?

In NSW, a court case to recover debt is dealt with in:

  • For claims up to $20,000, the Small Claims Division of the Local Court.
  • For claims more than $20,000 and up to $100,000, the General Division of the Local Court.
  • For claims greater than $100,000, the District or the Supreme Court.

At Bale Boshev Lawyers we understand that litigation can be stressful and costly. We have been litigating contentious matters since the early 1980s and our dedicated team will be available to:

  • Evaluate the debt and the most effective recovery strategies including the ability to utilise Security of Payment Laws, consideration of debtors’ likely financial position and ability to pay, consideration of enforcement options if a future judgment is obtained, general rights and pathways advice and advice as to whether a claim is available.
  • Draft statutory demands and claims.
  • Conduct negotiation on your behalf to achieve a commercial resolution in relation to payments, payment agreements and settlement deeds.
  • Providing representation at court including drafting statements of claim.
  • Seek enforcement of judgments by issuing writs of execution or garnishee orders.

The time limit to start a court case to recover a debt is six years from when the money became owed, the last repayment was made or when the debt was last acknowledged in writing.

If someone owes you a debt and you’re having trouble recovering it, make an appointment with David Kolarovski to discuss your options by calling our Belmont office on 02 4945 8577.

David Kolarovski

David Kolarovski