Are you owed money that you would like to collect?
If so, you can take legal action to recover it. Legal collection is cheaper than using a debt collection agency in some situations and your legal costs are recoverable on court scale.* Lawyers are prohibited from charging a commission when recovering debts pursuant to s. 183 of the Legal Profession Uniform Law.
Generally the process would be a letter of demand is issued, then if no payment is made court proceedings are initiated, and if no payment is made or a defence is not filed, judgment is entered. If a defence is filed then the matter becomes defended and usual rules of civil procedure will apply, depending on the Court involved.
If judgment is entered, a number of procedures are available to enforce it. The process will depend upon the circumstances of the case.
We can assist you with Writs (seizure of goods to sell in order to repay the debt), Examination Summons (requiring the debtor to attend Court to display how they will satisfy the Judgement), and Garnishees Orders (whereby the Court can order a third party to pay money to a creditor instead of a debtor).
*debt collection agencies generally charge their commission on recovery. A commission is usually anywhere between 10 – 30% of the debt, payable on recovery. If legal proceedings are necessary, then the debt collection agency will need to engage a lawyer for debt collection proceedings in Court. Depending on the debt collection agency, the legal costs will be paid by you on top of the commission payable by you. Lawyers must not act for debt collection agencies without disclosure of their relationship with the client. Costs charged by debt collection agencies and lawyers and debt collection conduct are regulated inter alia by the Legal Profession Uniform Rules, Legal Profession Conduct Rules and ACCC Debt Collection Guidelines.
Contact Kristine Hopkins to discuss your matter with a Melbourne debt recovery lawyer.
