You should make your own initial demands for payment from your debtor. If the debt remains unpaid, you can request that we instruct our solicitors to take immediate Legal Action or you can ask that they first send out their solicitor's Notice of Final Demand.

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Notice of Final Demand:

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• For debts up to $1,999.00 issue a Final Demand for only $40.00 plus GST! 

• For debts over $2,000.00 issue a Final Demand for only $80.00 plus GST! 

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We have a solicitor post a letter of demand to the debtor demanding payment by a specified date (normally within 7-14 days from date of posting). It warns that legal action will be taken if the payment is not made. It also seeks information from the debtor about why payment has not been forthcoming and invites the debtor to contact you directly about payment or dispute.

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If you have already made sufficient demands and warned your debtor that you intend to take legal action, you can skip our solicitor's Notice of Final Demand and instruct us to commence immediate Legal Action

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To commence Immediate Legal Action:

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For uncontested legal action, the costs involved for preparing, filling and serving a Statement of Claim, you will only have to pay $130.00 plus GST plus statutory legal costs plus disbursements, as outlined below:

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• Legal Administration Fee - $130.00 plus GST 

• Statutory Legal Costs (recoverable from Debtor):

  • Statement of Claim :​

    • $504.00 plus GST (debts $5,001.00.00 to $20,000.00)

    • $630.00 plus GST (debts $20,001.00 to $100,000.00)

    • $822.00 plus GST (debts $100,001.00 to $750,000.00)

    • $378.00 plus GST (debts $1,000.00 to $5,000.00)

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The debtor has 28 days from the date of service to file a defence in the proceedings. Should the debt remain unpaid, and the statement of claim remain undefended, we will obtain Default Judgment on your behalf. Our costs for this are:

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• Default Judgment:

  • $169.20 plus GST (debts $1,000.00 to $5,000.00)

  • $225.60 plus GST (debts $5,001.00 to $20,000.00)

  • $403.00 plus GST (debts $100,001.00 to $750,000.00)

  • $282.00 plus GST (debts $20,001.00 to $100,000.00)

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Once Default Judgment has been obtained, we will begin enforcement. Some of the options include seizing assets, property, or money from any bank accounts held by the debtor or from their wages. Other options include issuing a bankruptcy notice or creditor’s statutory demand. 

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• Enforcement Costs:

  • $71.00 incl GST - Application for a sealed copy of the judgement

  • $253.00 plus GST - Writ for Levy of Property 

  • $75.00 plus GST - Garnishee Order Per Bank or Wages

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The debtor is required to pay most disbursements and to our solicitors statutory legal costs in addition to the original debt amount. In most cases, we can also add interest charges to the debt amount from the date payment was meant to be received. The end result can be that collecting your debts virtually costs you nothing!

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If your matter is more complex or involves disputes, part payments, clarity of agreement, third party involvement, etc. and requires further work to be done, then an updated cost estimate will be provided to you prior to commencing legal action.

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If the action is contested by the debtor and takes the matters to a court hearing, we will provide you with an updated cost agreement.

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You should note that if a defence is filed after proceedings are commenced, the matter cannot be withdrawn without potential cost penalty to you. There may be court fees payable during these proceedings, which may include a hearing allocation fee. If the action is contested by the debtor and takes the matters to a court hearing, we will provide you with an updated cost agreement. Please note that there is always a risk in litigation that a defendant may be successful, and be awarded costs.  

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Disbursements

 

Disbursements are the external expenses, other than solicitor's costs involved in taking legal action.

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The most common disbursements are court filing fees, ASIC searches and fees for serving documents on people. These are controlled by the various State and Territory Governments and vary according to the amount of the claim and the State or Territory in which the action is taken. Disbursements must be paid at the time they are incurred but most can be added to the debt and are therefore paid back to you when the debt is paid.

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We will advise you of any such requirements and seek approval to incur such costs on your behalf.

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