Debt Collection Legal Support
Professional Debt Collection Services You Can Trust
Debt Legal Support
Dynamic Commercial Collections’ legal support team has experience in legal processes throughout Australia. We provide support and guidance about your legal recourse when recovering debts, so we can help you reach the best outcome possible.
Our team provides support for all types of legal matters, including uncontested matters by our office, and contested matters by our professional solicitors. In either case, we can quote all costs up front, so you can decide how you’d like to proceed.
Taking legal action against a debtor can have a number of benefits. It lets them know you’re serious about the matter, and it can prompt them to discuss the debt or negotiate an alternative. In many cases, your legal fees will also be recoverable from the debtor, reducing the cost on your end.
Speak with our team to find out more about legal support for debt collection.
How Our Legal Support Can Help
Recovering Debts From Individuals
There are several ways to recover a debt from an individual, including skip tracing. We’ll assess your situation and provide support and help recover the debt sooner.
Recovering Debts From Businesses
If a business owes you goods, money or another type of debt, we can explore your options for recovering the debt privately or through court proceedings.
Private Negotiations and Settlements
Private settlements are an effective way to recover debts. Our team can provide support and help you reach the best outcome through negotiations.
QCAT Debt Recovery
QCAT handles debt disputes for amounts up to $25,000. Our in-house legal team can streamline the QCAT process and help you reach a resolution sooner.
Managing the Court Process
Recovering a debt through the court follows a strict format. We ensure you have all the required documentation and that court deadlines are met.
Queensland Courts Debt Recovery
For debts over $25,000, we provide step by step guidance on how to recover your money through the Magistrates, District or Supreme Courts of Queensland.
The Legal Process for Recovering Outstanding Debts
Contact Us1. Making a claim against your debtor
Your claim is the first document to commence the legal proceedings and will include; the debt amount, legal costs, and any interest recoverable from the defendant.
The claim is served to the defendant by a bailiff, process server, or our office through our field services.
The defendant then has 28 days to comply, settle (in Qld, other states have a different time frame), or file a Notice of Intention to Defend and Defence.
One party may request from the other party further particulars of the other party’s pleadings. This can be done after the claim has been served on the defendant. The plaintiff may also seek further particulars of the defence. After the particulars have been provided, the parties may amend their pleadings, if needed.
2. Disclosure of relevant documents
This stage is also called “Discovery.” It usually occurs after the parties have finalised pleadings. During discovery, both parties will:
- Undertake a reasonable search for relevant documents
- Provide a list of documents to the other party (within 28 days)
- Provide any documents the other party has requested
At this stage, subpoenas against third party entities may be filed and served, seeking discovery of relevant documents.
3. Directions hearing
This type of hearing is a “Without Prejudice” meeting, whereby all parties come together with their solicitors to have a detailed discussion of the case. The aim is to develop a dispute resolution plan. This includes outlining the steps each party needs to take, as well as the timeframes for doing so.
The matter can be settled by a Settlement Agreement (outlining the default clauses clearly) at the Directions Hearing Conference, it can be recorded on the court file. Should the defendant fail to comply or default on the Settlement Agreement terms then the Plaintiff may have grounds to enter judgement against the defendant.
Making Individuals Bankrupt
If your debtor is an individual, you can apply to the court to make them bankrupt. This is called a creditor’s petition. You can file a creditor’s petition if someone owes you $10,000 or more.
Bankrupting a debtor is considered a last resort. Creditors typically receive small payouts during bankruptcy, so it’s preferable to negotiate an alternative settlement.
Making Corporate Debtors Insolvent
If your debtor is a business, you may be able to make the business insolvent in order to recover the money you are owed. You can apply to make a company insolvent for any debt of $4,000 or more.
Note that liquidating a debtor is the last resort. Creditors typically receive very small payouts from liquidation, so it’s preferable to find an alternative solution.
Legal Enforcement Options for Recovering Debts
If you reach a private settlement, or if you obtain a Judgement against your debtor, you have several legal options for enforcing the recovery.
Enforcement Warrant for Seizure and Sale of Property
This directs someone who owes money to the enforcement debtor to pay that money to you instead.
Enforcement Warrant for Redirection of Debt
This directs a financial institution to redirect regular payments received by the debtor to you.
Enforcement Warrant for Regular Redirections from a Financial Institution
This seizes part of the wages of the enforcement debtor. Each payment made by the enforcement debtor’s employer is forwarded to you.
Enforcement Warrant of Redirection of Earnings
This seizes part of the debtor’s wages. The debtor’s employer automatically makes payments to you.
Insolvency Process
Statutory Demand
A notice forwarded to the debtor giving 21 days to pay the debt.
For undisputed debt against a company over $2,000.00
No legal action is taken beforehand as long as not disputed by the debtor
First document filed before filing the Application for Wind Up
Application for Wind Up
This document may be filed after 21 days or within three months of the Statutory Demand being served, it’s a formal application filed in the Supreme Court or Federal Court. A liquidator will be appointed to act once the debtor has been wound up.
Bankruptcy Notice
This is a notice filed with the Australian Financial Security Authority for judgement debts over $5000 and is served to the defendant personally or by post, delivery, facsimile, electronic transmission, or Substituted Service. The defendant has 21 days to pay or settle the notice, file an application to set aside the Bankruptcy Notice in the Federal Circuit Court.
Creditors Petition
The Creditor’s Petition must be filed within six months of the act of bankruptcy and there must have been an act of bankruptcy committed by the defendant. It’s a formal application filed in the Federal Circuit Court. This seeks a Sequestration Order from the court to be made against the defendant’s property. This petition is required to be served personally on the defendant at least five business days prior to the petition hearing date.
Frequently Asked Questions
Contact UsWhat is Court Jurisdiction?
Before commencing proceedings, the Plaintiff needs to decide which Court or tribunal has jurisdiction to hear the matter. This essentially means you need to find the court with the appropriate and correct authority to handle the case.
What is a Summary Judgement?
At any time after a defence has been filed, the plaintiff or defendant can file an application for Summary Judgement against the other party to resolve the matter without the need for a full trial. A very strong case, evidence in a supporting Affidavit and outline the laws is needed to get Summary Judgment and is at the court’s discretion.
What is a Judgement?
If the defendant fails to respond within 28 days of the claim being served, the plaintiff may proceed with judgement by default against the defendant. An Affidavit of Service outlining how service was affected is filed with the judgement documents as evidence in court. This is a judgement without the need for a hearing.
Legal Process Glossary
Enforcement Debtor
The defendant in enforcement proceedings.
Plaintiff
Is the person or company starting the claim, also known as the creditor, or who the debt is owed to.
Defendant
The debtor, the person or company that owes the debt.
QCAT
Is Queensland Civil Administrative Tribunal for minor debts up to $25,000.
Magistrates Court
Is for debts up to $150,000 handled by a solicitor.
Enforcement Creditor
Is the plaintiff in enforcement proceedings.
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