Debt Recovery Law For Clients Across Eastern Melbourne

Debt Recovery Law For Clients Across Eastern Melbourne

The Process Of Recovery Of Bad Debt

To protect your cash flow, you need to ensure that your business can collect bad debt. This is a common area of business activity, and there is a well-established legal process for debt collection for businesses.


1. A letter of demand is sent to the debtor.

This debt collection letter must be legally admissible and must include: specific details of the debt, a request that payment is made by a specific date, and a warning that debt recovery options will be pursued if payment is not received by this date.

2. Suing for debt.

Court proceedings commence with the filing of a Statement of Claim. The Court handling the matter depends on the amount of the debt, and the forms required vary, so it’s essential to seek legal advice at this stage.

3. The way that the debtor responds to the Statement of Claim determines the next steps.

They may agree to an instalment order, but they may not respond at all, in which case a Court Judgment will be obtained, or they may file a Defence.

Court Judgements

The Court has a range of options available to proceed with the collection of your money. These include:


  • Seizing property, where the debtor’s goods are seized and sold at auction
  • Selling Real Estate
  • Summons, where the debtor has to attend a public Court examination to explain their assets and liabilities
  • Garnishee Order, where a percentage of their wages are given to you
  • Bankruptcy/winding up proceedings

How We Can Help With Your Debt Recovery

We have experienced business lawyers who are entirely at home with the legal processes involved in Victoria’s debt recovery services. We can help you at any stage of this process of recovering a business debt, whether it is helping you write an effective and legally sound letter of demand or pursuing the matter through the Court system. Our debt lawyers are familiar with the process of enforcing Judgment and can manage the process right through to bankruptcy or company winding up proceedings if need be.


We are also well aware of the costs of debt litigation and can advise you on whether it is commercially viable to proceed to Court.

Never Letting It Happen Again

One way to protect against bad debt is to review your contracts, trade agreements and terms of trade. We can help you make sure that your terms are clear and your processes solid so that you can avoid lengthy and costly litigation proceedings in the future.

Recover Your Debt With Williams & Lay

We understand that dealing with debt can be incredibly stressful, and we will work tirelessly to help you get the best possible outcome. Contact us today to schedule a consultation, and let us help you get your life back on track.

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