Debt Recovery in Perth

Recovering a debt promptly and efficiently can protect your business or personal finances. We provide tailored legal solutions for clients across Perth and Western Australia to help secure payment and resolve disputes.

Engaging a lawyer sends a strong signal to debtors that you are serious and allows you to ensure that your legal rights are protected.

Why Engage a Lawyer for Debt Recovery?

Using a lawyer rather than relying solely on a debt collector can offer significant benefits:

• Authority and enforceability: Lawyers can take formal legal steps, including commencing court proceedings, which debt collectors cannot.
• Transparent costs: We provide clear estimates of legal costs, so you know your likely legal expenses upfront.
• Stronger position: A lawyer’s involvement demonstrates seriousness and can increase the likelihood of payment.
• Strategic guidance: Our lawyers assess each situation carefully and advise on the most effective course of action.

Our Debt Recovery Services

We provide a complete range of services to recover debts efficiently.

Letters of Demand

A Letter of Demand is often the first (and sometimes final) formal step in resolving a debt. It clearly outlines the debt, sets payment terms, and explains the consequences if the debtor fails to comply.

Our approach includes:

1. Document collection and review: Collecting invoices, contracts, correspondence, and debtor information.
2. Settling terms of payment: We will adjust the terms of payment to suit your circumstances.
3. Drafting the letter: Outlining the debt, repayment schedule, and consequences for non-payment.
4. Client review: You may approve the draft letter before it is sent.
5. Sending the letter: Sent via email and/or registered post, with copies retained for your records.
6. Escalation advice: If payment is not received, we guide you through court proceedings or further recovery steps.

A carefully prepared Letter of Demand can result in prompt repayment without needing the escalate the matter further.

Deeds of Acknowledgment of Debt

A Deed of Acknowledgment of Debt is a formal document where a debtor confirms a debt exists and the amount owed. This provides certainty and legal enforceability, making it a valuable tool for creditors.

Benefits include:

• Clarity and certainty: The debt and repayment terms are clearly documented.
• Enforceability: Acts as conclusive evidence if there is a default in payment.
• Security options: Can include guarantees, caveats, or security over assets.
• Preserving rights: Maintains your ability to take legal action if necessary.

Our team drafts and enforces these deeds to ensure your interests are fully protected.

Caveats and Caveat Disputes

Caveats are an important legal tool for protecting interests, but disputes can arise over their validity or enforcement. We offer guidance and representation in Western Australia for:

• Assessing caveatable interests: Confirming whether your interest qualifies for lodging a caveat.
• Preparing and registering caveats
• Resolving disputes: Challenging improper caveats or defending yours against removal.
• Court representation: Acting in Supreme Court applications for caveat extension or removal, and negotiating settlements where appropriate.

Caveat disputes can disrupt property deals or create financial risk, offering a useful tool for securing payment of a debt. Acting early is crucial to safeguard your interests.

Statutory Demands

A Statutory Demand may be a powerful legal tool available under section 459E of the Corporations Act 2001 (Cth) for creditors owed $4,000 or more by a company and where there is no genuine dispute about the debt. It requires the debtor company to pay the debt, reach a settlement, or apply to set aside the demand within 21 days of service.

If the company fails to act within that period, it is presumed insolvent, allowing the creditor to seek orders to wind up the company and appoint a liquidator.

Our services include:

• Issuing statutory demands: Preparing and serving compliant statutory demands to prompt payment or confirm a company’s insolvency.
• Responding to statutory demands: Advising debtor companies on whether grounds exist to set aside the demand (such as a genuine dispute or offsetting claim).
• Applications to set aside: Preparing urgent court applications to set aside, noting the strict 21-day time limit.
• Strategic guidance: Advising whether a statutory demand is the most effective next step in your debt recovery process.

The consequences of issuing or ignoring a statutory demand can be significant. Our lawyers provide timely, practical advice to ensure compliance with the Corporations Act 2001 (Cth) and to protect your commercial position.