We understand that cash flow is vital to a business and have seen a number of successful businesses go into administration and close, not because it cant get clients but because it has a number of debtors. Urgency is key when it comes to recovering debts and waiting many months or even years for a matter to make its way through the Courts to recover a debt will increase the strain on businesses.
For this reason, developing an effective debt recovery strategy from the outset is the most important step. At an initial meeting, we will review the key relevant documents (particularly the contract, terms of trade, any quotes and key emails/text messages) to determine the most effective method to recover the debt, whether that be for Laird Lawyers to advise you or to issue a letter of demand and commence proceedings.
2. Debt owed by a Company - Creditor Statutory Demand
A Creditors' Statutory Demand (CSD) is an effective method for debts owed by a company which are due and payable and to which there is no dispute. If the debtor fails to pay the debt or have a Court set the CSD the debtor is deemed to be insolvent and may be wound up, making it n effective method to pressure an company to engage with you and pay the debt.
This will require us to prepare the Statutory Demand and Affidavit in support and serving both documents on the Debtor. Our fixed fee to prepare and serve these documents is $600 + GST.
3. Letter of Demand
If a CSD is not available or appropriate to your circumstances, the first step in recovering the debt is to issue a letter of demand. We can prepare the letter and either provide it to you to send on your letterhead or our letterhead where you want to be more forceful.
Our fixed fee to prepare an initial letter of demand for a debt due and payable is $150 + GST.
4. Commence Proceedings
If issuing a CSD or letter of demand fails to prompt payment, the next step is to commence proceedings. It is at this stage that we will need to thoroughly review all important documents, consider any responses received and draft your claim.
Each claim is different, some have no documents and are a simple verbal agreement, others have many documents, some lengthy, and others appear simple but may have some nuances which could have significant ramifications for your prospects of success. Additionally, the amount of the debt will impact which Court, the Court rules which
For this reason, we do not have have a fixed fee but will provide you with an estimated fee at our initial meeting, likely ranging from $500 to $2,500.