Top debt recovery lawyers in Perth

We help our clients resolve disputes with their debtors and recover the money they are owed quickly and efficiently. We operate like a debt recovery agency, but with more power, as we can help you take legal action to ensure that your debts are paid and recovered in a timely manner.


A debt recovery lawyer ensures that debt recovery is done in a manner that is fair to all parties involved. Debt recovery lawyers in Perth do this via legal proceedings, which in practice is a more cost-effective approach than hiring a collection agency to do the job. Hiring debt recovery lawyers gives you a higher chance of retrieving the money you are owed, because they are capable of compelling debtors to settle if they wish to avoid legal actions.


Even though this method mostly puts the responsibility on your debt recovery lawyer, it is still beneficial for you to learn about the process so you can set proper expectations. Read on to learn more about debt recovery and the processes surrounding it.

young asian woman cover her face after stressed with monthly bill expenses and credit card debt.

What Is Debt Recovery?

Debt recovery is sometimes mistakenly called debt collection, but there is a clear difference between the two. The most important distinction between the two is the person trying to retrieve the unpaid debt. Debt collection is when a creditor attempts to recover funds that have not been paid back by a customer.

Debt recovery, on the other hand, is when a loan such as a credit card debt remains unpaid, prompting the lender to hire a third party to collect the money owed. The third party could either be a debt collection agency or debt recovery lawyers.

Why Is Debt Recovery Important?

If you are running a business, unpaid debts could affect your enterprise’s cash flow and depending on the amount owed, your operations. Recovering money is easier and more efficient when working with debt recovery lawyers as opposed to an agency, because lawyers can take legal action in the event the debtor fails to return the money owed.

For individuals and small businesses, small loans may be necessary to keep the business up and running. That is why it is highly important to hire a debt recovery team who can ensure that all unpaid loans are paid back as initially agreed before the funds are released to the debtor.

Most debt recovery lawyers provide clients with three options when it comes to debt recovery, namely:

• Letter of Demand
• Minor Case Claim (Magistrate Court)
• General Procedure Claim (Magistrate Court)

These methods are legal, and a civil way of resolving disputes. If the debt occurs between organisations, this is a great way of avoiding conflict and maintaining a good business relationship.

Bills on a table

What Is the Process of Debt Recovery in Australia?

In general, there are four stages of debt recovery practised in Australia:

1. Letter of Demand

Letters of Demand can be issued to either a business or an individual. It is a formal document that makes a final demand for payment of any outstanding debt. Sending this letter to a debtor is a clear way of letting the said party know that you intend to take legal action if no payment is made soon. Usually, 7 days is given to the debtor to send a respond.

The Letter of Demand is usually issued at the final stage before a court case is pursued by the aggrieved party. Note that it is important that you have proof that you have sent multiple reminders for payment or attempted to contact the indebted party via phone or email to discuss a possible agreement.

Some people or companies are intimidated by law firms and opt for debt collection agencies. However, this isn’t always the easiest or most cost-efficient way to retrieve debts. Although unfortunate, some debtors don’t take collection agencies that seriously. Debtors consider letters of demand more compelling when they come directly from Law firms, because it shows them that you mean business.

Additionally, debt collectors or agents will have no ability to assist beyond this point, because the succeeding stages of the process require legal support.

2. Statement of Claim

A Statement of Claim Is a legal document outlining all the details of the debt you wish to collect plus any proof that supports your claim. It also indicates the purpose of you taking legal action. The document will be served to the debtor, who will now be known as ‘the defendant’ by the Court. They will be given ample time (usually 28 days) to respond to the statement.

If the defendant settles at this stage, they will ask you to withdraw your Statement of Claim, which will allow both parties to avoid Court. If they refuse to pay despite receiving the statement, or fail to respond, the case will proceed to Court.

3. Judgement

Here is where the court will require both parties to provide any documentation relevant to the case that will support their claims or defences. In some instances, the court may even subpoena private documents, such as phone or bank records. Judgement will be given by the court after arguments from both parties have been heard and assessed. 

4. Enforcement

If the Court rules in your favour, the defendant will be required to pay back the amount owed. But if the debtor ignores or violates the court order, you will be responsible for enforcing judgement. This can be done any time within twelve years from the date of judgement.

1. Letter of Demand

Letters of Demand can be issued to either a business or an individual. It is a formal document that makes a final demand for payment of any outstanding debt. Sending this letter to a debtor is a clear way of letting the said party know that you intend to take legal action if no payment is made soon. Usually, 7 days is given to the debtor to send a respond.

The Letter of Demand is usually issued at the final stage before a court case is pursued by the aggrieved party. Note that it is important that you have proof that you have sent multiple reminders for payment or attempted to contact the indebted party via phone or email to discuss a possible agreement.

Some people or companies are intimidated by law firms and opt for debt collection agencies. However, this isn’t always the easiest or most cost-efficient way to retrieve debts. Although unfortunate, some debtors don’t take collection agencies that seriously. Debtors consider letters of demand more compelling when they come directly from Law firms, because it shows them that you mean business.

Additionally, debt collectors or agents will have no ability to assist beyond this point, because the succeeding stages of the process require legal support.

2. Statement of Claim

A Statement of Claim Is a legal document outlining all the details of the debt you wish to collect plus any proof that supports your claim. It also indicates the purpose of you taking legal action. The document will be served to the debtor, who will now be known as ‘the defendant’ by the Court. They will be given ample time (usually 28 days) to respond to the statement.

If the defendant settles at this stage, they will ask you to withdraw your Statement of Claim, which will allow both parties to avoid Court. If they refuse to pay despite receiving the statement, or fail to respond, the case will proceed to Court.

3. Judgement

Here is where the court will require both parties to provide any documentation relevant to the case that will support their claims or defences. In some instances, the court may even subpoena private documents, such as phone or bank records. Judgement will be given by the court after arguments from both parties have been heard and assessed.

4. Enforcement

If the Court rules in your favour, the defendant will be required to pay back the amount owed. But if the debtor ignores or violates the court order, you will be responsible for enforcing judgement. This can be done any time within twelve years from the date of judgement.

Close up of african american man with calculator checking bills at home.

What Happens When a Bad Debt Is Recovered?

If the debtor pays you during the Statement of Claim stage, then there’s no need to go to court. Note that if the party that owes you money refuses to pay or respond, then the next step is to take them to court.

What Happens if You Ignore a Debt Collector?

Ignoring the debt collector will prompt them to find other ways to try to collect the debt, and that includes filing a lawsuit. If you are unable to settle your debt, find an attorney who can give you legal advice regarding your situation.

On your own, debt collection may prove to be highly difficult for you to manage. But with an experienced debt recovery lawyer at your side, you’re going to get all the support you need and be on your way to collecting the money you’re owed. If you need help with debt recovery, contact Hoe Lawyers for a free initial consultation today.

Person managing accounts on their laptop

Recovering Your Debt Should Be Easy

Except it isn’t, at least not all the time. In times when retrieving money from debtors proves to be a challenge, consider hiring experienced and skilled debt recovery lawyers in Perth. Hoe Lawyers has debt recovery attorneys who can give you legal advice on how to make debtors pay. In the event that payment is not given in a timely manner, these same lawyers will assist you as you take legal action against your debtor.

Ideally, a settlement is achieved before the matter procees to Court. If going to Court is inevitable however you need to make sure you have an expert lawyer by your side. Contact us to schedule an initial consultation regarding your concerns.

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