• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
lawyers@rslaw.com.au (02) 9299 4912

Commercial Lawyers & Solicitors | North Shore | Sydney CBD

  • Home
  • Our Story
    • Our Community
    • Our Environment
  • Our Services
    • Business & Commercial
      • Starting A New Business
        • New Business Structures
      • Buying & Selling a Business
        • Corporate Mergers and Acquisitions (M&A)
        • Sale or Purchase of Shares in a Private Company
        • FAQ – Sale of Business
        • FAQ – Purchase of Business
      • Business & Commercial Disputes
      • Corporate Governance & Asset Protection
      • Intellectual Property & IP Law
      • Contract Law
      • Climate Change, Energy Law & Carbon Trading
    • Debt Recovery
      • Debt Recovery Process
      • Enforcing a Debt or Judgment
      • Car Accidents & Motor Vehicle Claims
    • Probate, Estate Administration & Disputes
      • Applying for a Grant of Probate
      • FAQ’s – Contesting or Disputing a Will
      • FAQ’s – Executors and the Administration of Deceased Estates
    • Civil Disputes & Litigation
      • Business & Commercial Disputes
        • Shareholder Disputes
        • Partnership Disputes
        • Director’s Disputes
        • Contract & Property Disputes
      • Litigation
        • Commercial Litigation
      • Negligence
      • Alternative Dispute Resolution (ADR)
    • Divorce & Family Law
      • FAQs – Family Law
      • Separation and Divorce in Australia
        • FAQs – Separating from my spouse
        • FAQs – Divorce
      • Property Orders and Financial Disputes
        • Consent Orders and Binding Financial Agreements
        • FAQs – Property and Financial Matters
        • FAQs – Spousal Maintenance
      • Children, Parenting Orders and Agreements
        • FAQs – Children and parenting matters
        • FAQs – Child Support
      • De facto Relationships and Separation
        • FAQs – De facto relationships
      • Family Court or Federal Circuit Court?
      • Collaborative Family Law
      • FAQs – Seeking advice from a family lawyer
    • Property & Conveyancing
      • Retail & Commercial Leases
      • Selling a Property
        • FAQ – Selling a Property
      • Buying a Property
        • FAQ – Buying a Property
      • Transferring Property in NSW
      • Property Owners Disputes
      • Caveats
      • Mortgages & Securities
      • Option Agreements
      • Electronic Conveyancing in NSW
    • Wills & Estate Planning
      • Drafting a Will
        • Children in Wills
        • Letter of Wishes
        • Digital Assets in a Will
      • Power of Attorney
      • Guardianship & Enduring Guardians
      • Elder Law
      • FAQ’s – Wills and Estates
    • Bankruptcy & Insolvency
      • Personal Bankruptcy
        • Bankruptcy Notices
        • Debt Agreements
        • Enforcing a Debt or Judgment
      • Company Insolvency
        • Creditor’s Statutory Demand
        • Creditor’s Petition
        • Winding Up or Deregistering a Company
    • Building & Construction
      • Building & Construction Contracts
      • Building & Construction Disputes
      • Security for Payments Act
    • Employment Law
    • Insurance Law
    • Public Notary
  • Online Quotes
    • Simple Will Quote
    • Debt Recovery Quote
    • Conveyancing Quote
  • Meet the Team
    • Stephen Rockliff
    • John Snelgrove
    • Nicole Rockliff
    • Dick Herman
    • Michelle Rockliff
    • Anthi Balafas
    • Cristian Fuenzalida
    • Jinny Kim
    • Nathan Rockliff
    • Peter Gell
    • Michael Hutson
  • News & Articles
  • Contact Us
You are here: Home / News / Business & Commercial / Debt Recovery: The Start and Finish

Debt Recovery: The Start and Finish

While most businesses acknowledge legal debt recovery to be a necessary part of their business, solicitors are often thought of as simply the machinery through which the process is carried out. While it is important your legal team is able to effectively pursue debts, whether or not to pursue them in the first place, and what happens after it has been determined a debt should not be pursued further are important elements in recovering debts.

Deciding Whether to Pursue

Costs in debt recovery matters are variable depending on the circumstances of each case. It is important to consider potential costs before deciding whether or not to pursue a debt with which you are having difficulty. Further, it is critical that debts be assessed and re-assessed during the debt recovery process to ensure you are not “throwing good money after bad”. It is important THAT whoever is handling the debt recovery for your business is mindful of such commercial elements.

It is also critical that you and your legal counsel discuss clearly the issue of costs upon commencing recovery of a debt. An effective manner of limiting your exposure is to set and agree upon a “costs maximum” with your legal advisor. If costs approach this set maximum, you and your legal team can then re-assess your options regarding pursuing the debt.

Closing the File on a Debt – When the End is Not the End

One of the advantages of utilising a solicitor in pursuing a debt is that, even if you decide a debt is not worth chasing beyond entry of judgment, that judgment can have extremely negative effects on an individual’s credit record. That judgment is also enforceable for a period of twelve years.

Even though a debtor may not be in a position to satisfy the debt following entry of judgment, financial circumstances can change substantially over the following months and years. Thus, at any point within the twelve year time frame, you may re-commence pursuing the debt plus scale costs and interest at the Court prescribed rate which is generally higher than the banks indicator lending rate. With no need to go to the trouble of re-stating the facts which gave rise to the debt, or re-filing and re-serving a Statement of Claim. Also, whilst you may have discontinued pursuing the debt, the judgment’s effect on an individual’s credit records may prompt them to settle the debt at a later time of their own accord, converting a bad debt to a recovered debt without any further costs incurred by you or your business.

Contact us to find out more or to arrange a consultation with our debt recovery team in Sydney.

Primary Sidebar

Search

Categories

  • General
  • Employment Law
  • News
  • Probate, Estate Administration & Disputes
  • Property & Conveyancing
  • Services
  • Superannuation
  • Taxation
  • Uncategorised
  • Wills & Estate Planning
  • Bankruptcy & Insolvency
  • Building & Construction
  • Business & Commercial
  • Civil Disputes & Litigation
  • Debt Recovery
  • Divorce & Family Law
  • General Legal Services
  • Insurance Law

Online Enquiry

* indicates required field

News & Articles

Managing Employees in Australia given the Impact of COVID-19

We stress that due to the unprecedented nature of the pandemic and the very rapidly changing landscape, the guidelines below are general in nature and subject to change. Many of the laws that now apply to this situation were not written with regard to what is currently occurring. Therefore please exercise caution in relying on […]

Temporary Changes to Insolvency Laws in Australia due to the Coronavirus (COVID-19) Crisis

In a move aimed to lessen the economic impact on businesses and individuals caused by the Coronavirus pandemic, the Australian Government has introduced some changes to insolvency laws in Australia that apply to personal and corporate insolvency regimes. This includes a temporary increase to the threshold in which creditors can issue a statutory demand on […]

Coronavirus (COVID-19) Update

Following on from the extensive reporting in relation to the COVID-19 pandemic we have implemented a number of protocols to enable the business to continue operating if a staff member or principal is diagnosed with the virus and/or the office needs to close for a period of time. Our staff and principals have adopted best […]

Footer

The Rockliff Snelgrove Difference

We have lawyers that are Accredited Specialist in Business Law and Family Law
We have over 100 years of combined experience
Our lawyers and consultants are experts in their field to enable us to give you tailored legal advice to suit your specific needs

Contact Us

  • Level 5, 50 King Street

    Sydney NSW 2000

  • (02) 9299 4912

Connect With Us

  • Email
  • Facebook
  • LinkedIn

Translate

Newsletter

Sign up to our newsletter for updates on our latest news, articles and special promotions!

Our website does not give legal advice. All materials are for informational purposes only and should not be relied upon as legal advice. The use of this website is subject to our:
WEBSITE DISCLAIMER – PRIVACY POLICY – TERMS & CONDITIONS OF USE
Liability limited by a scheme approved under Professional Standards Legislation.Copyright © 2020 · Website hosted by Lift Legal · Log out