{"id":2651,"date":"2022-02-16T05:43:09","date_gmt":"2022-02-16T05:43:09","guid":{"rendered":"https:\/\/hoelawyers.com.au\/?page_id=2651"},"modified":"2024-10-25T12:11:52","modified_gmt":"2024-10-25T04:11:52","slug":"debt-recovery","status":"publish","type":"page","link":"https:\/\/hoelawyers.com.au\/?page_id=2651","title":{"rendered":"Debt Recovery"},"content":{"rendered":"\n
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Top debt recovery lawyers in Perth<\/strong><\/h1>\n\n\n\n

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.<\/p>\n\n\n\n

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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.<\/p>\n\n\n\n


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.<\/p>\n<\/div><\/section>\n\n\n\n

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What Is Debt Recovery?<\/strong><\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n<\/div>\n<\/div><\/section>\n<\/div><\/section>\n\n\n\n

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What Is the Process of Debt Recovery in Australia?<\/strong><\/h2>\n\n\n\n

In general, there are four stages of debt recovery practised in Australia:<\/p>\n<\/div>\n<\/div><\/section>\n\n\n\n

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1. Letter of Demand<\/h3><\/div>

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.<\/p><\/div><\/div>\n<\/div>\n\n\n\n

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2. Statement of Claim<\/h3><\/div>

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.<\/p><\/div><\/div>\n<\/div>\n<\/div><\/section>\n\n\n\n

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3. Judgement<\/h3><\/div>

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. <\/p><\/div><\/div>\n<\/div>\n\n\n\n

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4. Enforcement<\/h3><\/div>

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.<\/p><\/div><\/div>\n<\/div>\n<\/div><\/section>\n\n\n\n

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1. Letter of Demand<\/strong><\/strong><\/h3><\/div>

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.<\/p><\/div><\/div>\n\n<\/div><\/div>\n\n

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2. Statement of Claim<\/strong><\/strong><\/h3><\/div>

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.<\/p><\/div><\/div>\n\n<\/div><\/div>\n\n

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3. Judgement<\/strong><\/h3><\/div>

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.<\/p><\/div><\/div>\n\n<\/div><\/div>\n\n

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4. Enforcement<\/strong><\/h3><\/div>

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.<\/p><\/div><\/div>\n\n<\/div><\/div>\n\n

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