Debt Recovery Basics for Business
- Send a Letter of Demand to the debtor setting out the amount of money outstanding and giving the debtor say seven (7) days within which to make payment or face legal action.
- The debtor has the right to dispute the debt.
- Proceedings for small debts (less than $10,000) are dealt with in the Local Court. Proceedings start with filing a document called a Statement of Liquidated Claim which sets out the amount claimed including Court costs, Solicitor costs and interest.
- The Claim is then served on the debtor. The debtor has twenty eight (28) days within which to file a Defence. If no Defence is filed, the creditor can enter Default Judgment, to recover all the money and costs.
- Thereafter, a Writ can issue from the Court, so that the Sheriff can seize the debtors goods and sell them to satisfy the Judgment.