In New South Wales, and in most of Australia, recovering a debt usually follows the same timeline of events. After a debtor (the individual who owes money) fails to pay on time, and amicable communications between the debtor and creditor (the individual who is owed money) do not result in the outstanding debt being paid, the creditor will seek to take legal action to recover what is owed to them.
More often than not, a skilfully worded letter from a solicitor and the prospect of legal action is enough motivation for a debtor to pay the debt owed. A Letter of Demand notifies the debtor that the creditor has instructed us to act for them and has escalated the matter and that Galluzzo Lawyers will commence legal proceedings if the debt is not fully paid by a certain date.
A Letter of Demand sends a strong message, one that demonstrates to the debtor that you are serious about collecting what is owed. It has even more of an impact if it is supported by relevant documents, proving indebtedness such as tax invoices, contracts, terms & conditions
No actual legal proceedings commence until the ‘Statement of Claim’ is filed in Court. The Statement of Claim indicates the beginning of the formal legal ‘debt enforcement process’. This document outlines to the court how much is owed, including interest on the late payment, and documents all relevant evidence proving indebtedness and the debtor’s failure to pay.
Galluzzo Lawyers believes that the most successful debt recoveries are those which are settled through just a Letter of Demand. Our extensive experience in debt recovery and well-known reputation in legal circles means that a Letter of Demand from us will bring more force and credibility to a creditor’s threat of legal action.