Debt Recovery

When it comes to debt recovery, it pays to have the right advice from the outset.

A lot of “smaller” debt recovery matters (below $100,000) are dealt with in the Local Court.  If successful in the Local Court of NSW, it can be difficult to obtain a proper costs order against the defendant, especially in small claims matters (below $20,000) and for debts between $20,000 and $50,000, due to the restrictive costs regime that applies.  This makes engaging a Solicitor to act in smaller debt recovery matters below $50,000 problematic because costs can quickly escalate beyond the amount of the actual debt.

The District Court of NSW has jurisdiction to hear debt recovery claims between $100,000 and $750,000.  The Supreme Court has jurisdiction to hear all matters above $750,000.  It makes more sense to engage Solicitors in those monetary claims as, if successful, it is likely that an appropriate costs order will be made against the unsuccessful party. 

It is a good idea to make reasonable offers to settle (Offers of Compromise or “Calderbank” offers) during the proceedings as: (a) if accepted, the stress and costs of a Hearing will be avoided, and (b) if not accepted, such offers can assist the client to obtain a better costs order (“indemnity” costs) than otherwise would ordinarily be the case.

Further, there are various mechanisms available to enforce a Judgment against a defendant in an effort to recover the sums owed.  These mechanisms range from issuing an Examination Notice wherein the defendant can propose a payment of the Judgment by instalments, to a Writ for the Levy of Property, and all the way to Bankruptcy proceedings (for an individual) or Winding Up Application in Insolvency (for a company).

We have acted in many and varied debt recovery matters and assisted clients to recover sums owed.  If you need advice or assistance in respect of a debt recovery matter, please do not hesitate to contact our Solicitor Clint Braid on (02) 6621 8833 or email on clint.braid@spwalters.com.au