Debt Recovery Lawyers Melbourne

Having to deal with a debtor that is unable or unwilling to pay off the debts, be it business of personal, can be upsetting and distressing.  

An expert debt recovery lawyer can help in personal and business debt collection cases through well established legal proceedings for debt collection in Melbourne. Choosing a Debt recovery lawyer over a debt collection agency has an added advantage of potential recollection of legal charges beside the actual debt amount. 

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The Process of Debt Recovery in Melbourne

  • The first step in any legal debt collection procedure is drafting and sending a 'Letter of Demand" to the debtor. This debt collection letter must be so formatted that it is admissible in the court of law. It is hence vital for the lawyer to include specific details of the debt, a request that the payment is made by a certain date and a warning that the matter will be taken to court if the given date is missed.
  • Once the letter of demand is sent to the debtor, the debt recovery lawyer files a statement of claim. This stage of the legal debt recovery procedure is highly influenced by the amount and nature of debt. Depending on the amount of debt, the court and the corresponding forms may vary. It is always recommended to have a professional by your side at this stage.
  • The debtor, in response to the statement of claim, may agree to an installment order, file a defence or might choose to not respond at all. If the debtor opts to to stay quiet, it becomes very easy for the debt recovery lawyer to obtain a Court Judgement.
  • The court judgement obtained upon no response form the debtor is often in favor of the creditor. The judgement might help you collect your your money through seizing and selling the debtor's assets at auction, selling the debtor's property, garnishee order; where the debtor is liable to pay a percentage of their wages to you or bankruptcy proceedings.

Be informed, a legal debt recovery approach is not always the best-suited course of action. You must first ensure that the terms of contract are met precisely and that the debtor has no loopholes to make the liability to pay questionable. It is therefore advised to consult a debt recovery lawyer and get your agreement reviewed before you consider taking the matter to the court yourself.

How a Debt Collection Lawyer & Agent Can Help?

RECOVERING EXISTING DEBT

Our experienced lawyers and debt collection agents are qualified and experienced with the legal approach involved in the debt recovery proceedings in Melbourne.
Beginning from drafting an effective and legally sound letter of demand to seeking the final judgement from the court and enforcing the court orders, we take a firm stand by your side through all stages of personal and business debt recovery. Our lawyers can further effectively lead the process right through to bankruptcy or company winding up formalities if need persists. 

Your initial consultation with us involves a brief conversation about the nature and amount of your debt, reviewing your contracts and weighing litigation costs against the recoverable debt amount. We know how much it costs to pursue a legal approach towards recuperating a business or personal debt and we’ll tell you beforehand if  We are well acquainted with debt litigation costs and whether it is commercially viable to proceed to Court and likelihood of success.

NEVER LETTING IT HAPPEN AGAIN

We at Aries Lawyers believe that costly litigation may be avoided with proper coordination with a legal practitioner from the very beginning. 

One way to protect against bad debts, personal or commercial; is to get your contracts, trade agreements and terms of trade thoroughly reviewed by a lawyer. We can help you keep your terms clear in your financial agreements so you can avoid lengthy and costly litigation proceedings in future.

Contact us or book an appointment with a debt recovery lawyer. 

FAQs

Most frequent questions and answers

Debt recovery is the legal process in which a creditor can initiate to get back the money that is owed by the debtor. An approach to debt recovery is to prepare to take court action. The first step is to send a formal letter to the customer, letting them know what you plan to do. A letter of claim advises that you intend to sue them unless they settle their account by a specified date.

Yes, debt collectors have to provide proof of debt, which includes verification proof that you owe the debt, and the amount of the debt needs to include documentation from the original creditor. Just ensure that the proof will be provided by the debt collector, not from the original creditor.

Bankruptcy is a powerful tool for debtors. If you declare bankruptcy, some kind of debts can’t be wiped out, such as court-imposed penalties and fines, child support & maintenance, HECS & HELP debts (government student loans), and more. It eliminates many types of debts, such as medical, legal & accounting fees, unsecured personal loans, and pays day loans, gas, electricity, phone, and internet bills.

The form used to enforce a judgment debt against a creditor to recover money is called a Garnishee order. The court will then order the party that owes the money to pay the judgment creditor instead of the judgment debtor.

A garnishee order can be stopped by an application at the court. It can also be stopped if the judgment creditor informs the employer that they no longer need the money.

Compared to the ‘no-collection, no-commission’ model in case of a debt collection agency, yes, legal debt recovery may be more expensive. But it is also more reliable as the debtor is subject to the court of law. Legal debt recovery ensures the collection via seizing of property and assets, garnishee orders, and other lawful proceedings.

A demand letter is a formal notice demanding that the person to whom the letter is addressed, performs an alleged legal obligation such as paying a sum of money, acting on a contractual commitment or rectifying some identified problem. Most of the demand letters will include a deadline for action.

Never ignore a demand letter. Always try to respond and resolve the issue. If you do so, there is a risk of going to court. And if you end up filing a lawsuit, a demand letter shows the court that you tried to work with the other party to settle the problem.

Aries Lawyers

Our goal is to help people in the best way possible. this is a basic principle in every case and cause for success. contact us today for a free consultation.