Is unpaid debt or invoices affecting your business?
Debt collection in Australia happens when creditors and collectors seek to secure payment from consumers, individuals or businesses who are legally obliged to pay money owed.
Here at CPC Lawyers we provide specialist debt recovery services for businesses and individuals in Adelaide and South Australia.
Our lawyers are highly experienced in enforcing debt collection through initial letters of demand and statutory demand documents. If the debt is still not paid after this initial process then CPC Lawyers will be able to assist you with making Court applications to recover your debt and also represent you in Court.
CPC Lawyers can assess your situation and outstanding invoices to provide advice on whether you have legal standing to pursue the debt owed to you. Prior to making any Court application for outstanding debt, CPC Lawyers will evaluate your case and provide advice on the benefits and risks associated with going to Court as well as the likelihood of success.
Contact us for more information or to arrange a consultation.
Debt Collection Services
Assistance with slow payers
Initial letters of demand
Statutory demand documents
Court application for outstanding debt
Evaluate your case and provide advice on the benefits and risks associated with going to Court
Debt Collection for Businesses
CPC Lawyers can assess your situation and outstanding invoices to provide advice on whether you have legal standing to pursue the debt owed to you.
Debt Collection for Individual
Enforcing debt collection through initial letters of demand and statutory demand documents to individuals who are legally obliged to pay money owed.
Frequently Asked Questions
How does debt collection work?
If the debt is not disputed and the debtor agrees to make a payment but cannot do so straight away, our lawyers can negotiate with the debtor on your behalf so that fair payment plans are entered into.
How does debt collection affect credit?
If you are the one being pursued for overdue debt then you may be reported to various credit agencies which may affect your credit rating and your ability to obtain loans and credit cards in the future. If you think you have been unfairly pursued for a debt that you do not owe then CPC Lawyers can help you dispute the debt.
Why engage a debt collection service?
Engaging a debt collection service (rather than chasing the debt yourself) signals to the debtor that you are serious about pursuing the debt and have decided to hand the matter over to professionals. Debt collection services should be engaged after you have attempted sending friendly reminders and a letter of demand as well as attempting informal negotiations.
Do debt collection agencies work the same as lawyers?
No – debt collection agencies are used to make continuous contact (usually by telephone and in-person) with the debtor to request payment of the debt. Lawyers generally communicate with debtors by way of written correspondence (to ensure everything is on record) and have the ability to commence Court proceedings against the debtor.
Can a debt be too old to recover?
A creditor must begin court proceedings to recover the debt within six years of the cause of action accruing.
What is value debt worth engaging a lawyer?
It depends on your financial circumstances and whether you are prepared to chase the debt or if you can live without receiving the debt amount (to avoid any legal fees incurred in chasing the debt). If you are still unsure whether it is worth it, please contact us to discuss the debt and your situation, and we can give an estimate of our costs in chasing the debt to assist you in making your decision as to whether to engage a solicitor.
When is the right time to pursue a debt?
In our experience, as soon as possible. As above, a creditor must begin court proceedings to recover the debt within six years of the cause of action accruing. This sounds like a lot of time. However, this time can go quickly in circumstances where the debtor is avoiding the repayment at all costs.
If, for example, an invoice is issued which requires payment to be made within a certain period of time, it is important to issue friendly reminders at the expiration of that period.
How long can you be chased for debt in Australia?
For most debts, a creditor must begin court proceedings to recover the debt within six years of the cause of action accruing (which can either be from the date that the debtor last made a payment towards the debtor from the date that the debtor last admitted in writing that they owe the debt). However, in the Northern Territory, the limitation time is three years.
What happens if you ignore debt collectors in Australia?
If debt collectors are ignored, they will notify the creditor, who may then decide to commence legal proceedings against you. This does not require any warning by the creditor to you as pre-action notices are only required to be sent to the debtor if the creditor believes that the debtor has reasonable grounds to dispute the debt (which is rarely the case).
What rights do debt collectors have in Australia?
Debt collectors have a right to contact a debtor about a debt that they owe and can only make contact for purposes such as:
Making a demand for a payment.
Making arrangements for repayment.
Finding out why an agreed repayment plan has not been met.
Reviewing a repayment plan after an agreed period of time.
Debt collectors should only make three phone calls per week (or ten per month) on weekdays and weekends until 9 pm.
Debt collectors can visit a debtor's home if there is no other way the debt collector can make effective contact with the debtor.
Can I add costs for debt collection to my debtor's overdue invoice?
You can in circumstances where that invoice expressly states that any debt collection fees reasonably incurred to chase any debt are payable by the debtor upon their failure to make payment of the invoice within the period of time specified on the invoice. Otherwise, if the matter progresses to engaging a solicitor and commencing Court proceedings against the debtor for the debt, some legal fees can be claimed against the debtor.