Over the years we have gained extensive experience and knowledge in debt collection and recovery and have developed a strong client base in Perth of small and medium businesses, strata companies and local governments.
While the bulk of our debt collection work involves assisting creditors in making demands, commencing legal proceedings and taking enforcement action, we also advise on winding up, bankruptcy and local government sales of properties.
Knowing the ins and outs of the debt collection and recovery process, we are also adept at helping people on the wrong end of a debt claim. Unless we are conflicted, we are happy to help debtors navigate the challenges of defending unwarranted claims.
Our Debt Collection and Recovery Process
Our team appreciates the importance of effective systems and processes for the management and recovery of debt. We have established quality procedures proven to be effective in the smooth processing of both small and large volume debt recovery claims.
Our process involves:
1. Letter of Demand
Upon receipt of instructions from our client, a letter of demand will be issued to the debtor(s). The demand provides information on the various payment methods and advice on the consequences of not paying the demand within the time stipulated in the demand.
2. Follow-Up Telephone Calls / SMS Messages
We understand the importance of avoiding unnecessary legal costs. Following the expiry of the stipulated demand period, we will request the contact details of debtors who continue to fail to pay the outstanding debt.
3. Magistrates Court Proceedings
If no payment or response is received, our client’s instructions will be sought by an account manager to commence Magistrates Court proceedings against the debtor.
Once a claim is filed at the Magistrates Court, it is sent to our process server or the bailiff for service on the debtor. After service of the claim, the debtor usually has 14 days within which to either admit or defend the claim.
Judgment can be entered by admission of the claim by the debtor, by default of the debtor in compliance with stipulated time limits for various steps in legal proceedings or following a trial of the action.
- Default Judgment
Applications for judgment in default of an appearance can be made 14 clear days from the date of service of the General Procedure Claim.
- Admission of Claim
When a claim is admitted by the debtor, a copy of the admission of the claim will be provided to our client and instructions sought in relation to the payment arrangement offered by the debtor. On instructions, a letter will be sent to the debtor accepting or rejecting the debtor’s proposed payment arrangement.
Once judgment is entered against a debtor, the client may enforce the judgment. Generally the most effective enforcement methods are a Means Inquiry into the financial circumstances of the debtor and if unsuccessful, a Property (Seizure and Sale) Order (“PSSO”). We will seek instructions to apply for either a PSSO or a Means Inquiry after discussing the most appropriate method with our client.
In the event a Debtor defaults twice on a payment arrangement imposed by the Court at a Means Inquiry, we can, with instructions, initiate a Default Inquiry. These inquiries require the Debtor to attend Court and state their reasons for non-payment. The Debtor may be fined or imprisoned for non-payment and the payment arrangement re-negotiated or reinstated.
If a Debtor is served with a Means Inquiry Summons or a Default Inquiry Summons and does not attend Court we can, with instructions, seek a warrant for the arrest of the debtor. The bailiff will make three attempts of service of the warrant.
6. Bankruptcy and Winding Up Proceedings
Other methods of enforcement include bankruptcy notices and statutory demands. Winding up proceedings can be effective against certain long standing debts and claims against corporations.
7. Local Government Act 1995 (WA) Provisions
CS Legal is also able to provide legal advice and assistance on the execution of the power of sale, power to lease and power to transfer land to local governments under section 6.64 of the Local Government Act 1995 (WA). Our solicitors have extensive experience in such matters and will be able to provide effective and timely advice within a short time frame.
Why should I use CS Legal for debt collection and recovery?
Our debt collection and recovery team is an energetic and dynamic team focused on successful outcomes and client satisfaction. We appreciate the importance of understanding the claim made in the demand and advising our clients of any issues in prosecuting the claim.
Our method of operation is simple but effective. Straight talk ensures that every debtor understands the consequences of their failure to comply with demands. Execution of consequences is swift and persistent. We are extremely responsive to our client’s needs and work closely with them to deliver results.
Unlike a lot of debt collectors we do not charge commission on the amount of debt recovered. Our fees are transparent and often more cost effective when recovery of a debt is successful.
|We are proudly a WALGA preferred supplier.|