e-mail address: info@bpartner.com.au

phone: 02 9817 0644

Debt Collection

We have a system whereby debt collection can be effected at very affordable rates.

Debt collection

We have a system whereby debt collection can be effected at very affordable rates . In effect, no legal fees are payable except in circumstances where the claim for recovery of the debt becomes contested, or otherwise where legal intervention is required. Needless to say, our scale of costs are recoverable from collection. Otherwise, an automatic process is implemented for a very nominal processing fee. Read on.

Collection processes can be commenced in different courts in different ways depending on:

the amount involved, i.e., up to $100,000 in the Local Court and over this amount in the District Court;

 whether the debtor is a company or an individual. In the case of an action against an individual, it is a requirement that the collection process be commenced with a letter of demand. If the debtor fails to comply with the demand, you are entitled to issue a statement of claim.

If the debtor is a company, you can commence the process by way of a Creditor’s Statutory Demand (a winding up notice). This is a document which demands payment and states that in the event of a failure to make the payment, then the company  is deemed insolvent, and can be wound up. This can be a very powerful tool.

Generally speaking, one will only start with the winding up notice if there were some clear and unequivocal acknowledgment of the existence of the debt. These proceedings are conducted (by our office) in the Federal Court and that Court does not entertain disputed claims. If the process has been commenced in this way, and the debtor, through his solicitor or otherwise, advises that he/she /it intends to make application to set aside the demand, it is often wise to withdraw it and commence by way of a letter of demand and statement of claim.

If you proceed by way of a letter of demand and statement of claim, and obtain a Judgment, then the winding up process can proceed and will be entertained by the Court.

It is also to be remembered that winding up the company has in some ways has quite the opposite effect to achieving your objective, that is to say, being paid, because if the company is wound up and a liquidator is appointed, your prospect of repayment is diminished by the liquidator’s capacity to realise assets and pay you amongst other creditors.

Winding up is but one way of executing Judgment against the company.

Once Judgment is obtained, there are a variety of ways in which a Judgment can be executed. An individual can be issued with a Bankruptcy Notice, which has in many ways the same effect as a winding up notice. That is to say, if the debtor fails to pay within the time prescribed by the Notice, then they have committed an act of Bankruptcy, which will entitle you to proceed to a bankruptcy petition. Once again a very powerful tool.

Winding up and bankruptcy are pressure mechanisms which normally bring enough pressure to bear on debtors that causes them to respond to the extent that they are able. It is to be noted that whilst these proceedures are highly effectice they are expensive procedures and filing fees are high.

The procedures available otherwise in the Local and District Courts are:

  • Garnishee, that is to say, requiring the debtor’s bank or one of his debtor’s to pay you;
  • Writ of execution, which requires the sheriff to sell goods and chattels and pay you from the proceeds of sale.
  • Sometimes, in order to determine which way to go, one can proceed to have a debtor examined, through the issue of an examination summons. This requires the debtor to attend Court to outline all his assets and liabilities, income and outgoings, so as to then enable you to make your choice as to which way to go in terms of executing Judgment.

This service is only limited to obtaining Judgment. All methods of executing Judgment are charged separately from the Schedule scale.

Similarly, you are required to adhere strictly to the steps and stages set out below and any divergence from that procedure, which requires the giving of advice or other assistance by solicitors in the practice will be charged at their normal rates (see below- SOLICITORS’ SCALE OF FEES).

Bankruptcy Proceedings

COSTS FOR ISSUE OF BANKRUPTCY NOTICE

Costs

Drawing bankruptcy filing & service $275.00

Disbursements

Lodgment fee payable to ITSA $400.00
Bankruptcy search (approx) $ 24.37

COSTS FOR ISSUE OF CREDITOR’S PETITION

Costs

Disbursements Our above costs and disbursements are based upon an uncontested bankruptcy application. As you will appreciate, there will be additional costs and disbursements incurred in the event that the bankruptcy application is contested; or an application is made to the court to obtain an order for substituted service of the creditor’s petition upon the debtor. See general scale fees below.  As you will appreciate, there will be additional costs and disbursements incurred in the event that the application is contested or if negotiations are entered into and adjournments sought.We will charge you professional fees for this type of work we do in accordance with time spent on your matter by personnel in our office as follows:

SOLICITORS’ SCALE OF FEES

  • an hourly rate of : $ 400 (plus GST) for Mr Brown and all other qualified solicitors apart from those referred to in
  • an hourly rate of : $ 350 (plus GST) for a solicitor of less than 5 years’ standing.
  • an hourly rate of : $ 150 (plus GST) for a para-legal (i.e., a student or other unqualified person doing legal or quasi-legal work under supervision).
  • travelling time for all of the above at half the above rates.

These rates will be proportionately charged for work involving shorter periods less than an hour. Our charges are structured in minimum 6 minutes units. Accordingly, the time charged for an attendance of up to 6 minutes will be 6 minutes and the time charged for an attendance between 6 and 12 minutes will be 12 minutes.

All Payments to be made directly to our Trust bank account :Account Name: Brown & Partners Solicitors Trust Account. Any direct payments will only be acted upon if the transmission slip/docket is forwarded either as an attachment to an email or via fax and in either case noting your details and those of the debtor. If you receive payment (including cost claimed in any process issued by us) from a debtor you must apply monies received firstly in payment of our costs, which will be notified to you upon request.

Estimated costs in drawing affidavits and creditor’s petition ,filing and service of same and obtaining a Sequestration Order against debtor $2,500.00
Federal Magistrates’ Court filing fee for issue of creditor’s petition for an individual applicant $ 374.00
Federal Magistrates’ Court filing fee for issue of creditor’s petition for a corporation $745.00
Bankruptcy searches @ $22.00 per debtor) $22.00
Agent’s fees to file and undertake searches $20
Preparing statutorydemand,supportingaffidavit $500.00
Company search $15.40
Estimated costs in drawing affidavits and application $1750.00
Federal Court of Australia filing fee for winding-up application for an individual applicant $785.00
Federal Court of Australia filing fee for winding-up application for an corporation applicant $1881.00
Advertising notice of application (approx) $600.00
Preparing for hearing, appearing at hearing and obtaining winding-up order or dismissal $850.00
Preparing for hearing but hearing adjourned $250.00
ASIC searches (approx) $30.00
Bank: St George Bank, Kogarah
BSB: 112879
Account No: 002876217

Any direct payments will only be acted upon if the transmission slip/docket are forwarded either as an attachment to an email or via fax and in either case noting your details and those of the debtor

If you receive payment (including cost claimed in any process issued by us) from a debtor you must apply moneys received firstly in payment of our costs, which will be notified to you upon request.