Debt Recovery

Professional guidance for all debt recovery matters

To effectively recover a legally enforceable debt, it is essential to follow a careful process of pre-action procedures for the best results. An outstanding debt should not be left unresolved for too long if you plan to take legal action, as there is a six-year limitation period for initiating legal proceedings in most cases.

If you receive a debt recovery letter of demand, it is important not to ignore it, even if you believe you should not have to pay the amount requested.

For assistance with all debt recovery matters, whether seeking payment or disputing a debt recovery notice, contact Nathan White Lawyers.

How debt recovery works

What you need to begin debt recovery

To be able to initiate legal recovery of a debt, you must first be able to prove that the payee owes you money. Proof can be in the form of a contract, invoice, bank statement or any other evidence that shows that a person has incurred a debt or borrowed a sum of money that was required to be paid back.

It is advisable to keep records of your attempts to recover the amount, which can be used as evidence to support your claims.

Initial letter of demand

If there is sufficient evidence that the amount is recoverable, we send the payee a specially formatted letter of demand, informing them that you seek to recover the debt. This notice outlines the amount owed, invites the payee to negotiate with you regarding the settlement, and specifies the date they need to respond. You may commence legal proceedings if they fail to engage with you by this date.

Often, this letter is enough for the payee to take your debt seriously and either make a payment or begin negotiations. However, if there is no response, we can proceed to the next step, which involves filing a court claim.

Taking the debt to court to seek payment

If the payee fails to pay the debt or arrange a payment plan after receiving the Letter of Demand, the next step is to seek a court decision to recover the debt. Once the case is filed with the court, all parties must formally mediate to settle the matter.

The case will proceed to trial if no agreement is reached during mediation. At this stage, both parties will have the opportunity to present their arguments, and the judge will decide whether an amount is owed, how much is owed, and whether either party can recover enforcement costs in addition to the debt. The judge’s findings will then be transformed into legally enforceable payment orders.

What if I don’t believe I should pay a debt?

If you have been sent a letter of demand for a debt you don’t believe you should pay or can’t afford to pay, don’t just stick your head in the sand, hoping it will go away! Disputed debts have the best chance of success if you participate in the process. Attempting to negotiate the dispute yourself can be risky and doesn’t always work out in your favour.

We recommend engaging a lawyer for the best chance of a better outcome for you.

For legal assistance with all debt-related matters, whether seeking payment or disputing a demand, Nathan White Lawyers can help.

Experts in debt recovery

If you’re facing debt collection, handling it alone can be costly and ineffective. Our skilled lawyers will provide valuable insights into the legal process. They’ll help you assess your chances of success and suggest the best options for your situation.

A formal solicitor’s letter is often enough to prompt payment while keeping your relationship with clients intact. For larger debts, you may need stronger measures like repossession or bankruptcy. Our team will guide you through the best options for a fixed cost, and importantly, there are no commission fees involved.

Let us come to you

Protect your financial future!

Whether you’re seeking payment or disputing a claim, contact us for a free consultation, and let us help you explore the best options for your situation.