Why You Need Boss Lawyers to Assist Recovering Your Debts
It is well established that stagnant debt can have an adverse effect on a business’s profitability, sustainability and cash flow. Even large businesses can be left crippled when multiple small debts are left outstanding which is why it is important to ensure your business has an effective debt recovery method implemented.
Boss Lawyers offer a tailored and systematic approach to debt recovery to our client’s, across all sectors. Our approach is backed by our practitioners wealth of experience in a broad range of matters from Building and Construction to Financial and Accounting.
We acknowledge that each case has a different legal solution and we will discuss with you from the outset the appropriate solution to recover debt based on your goals. We tailor our debt recovery methods individually for each client based on their commercial reality and regularly report so you always know what you pay for.
We understand the commercial value in quick and effective recovery to eliminate outstanding debt and increase profit, which is why we have developed a 3-tier process for debt recovery to streamline the debt recovery process and maximise your bottom line.
Client’s often do not realise that on most occasion legal fees are sometimes recoverable.
How We Recover Debt
Our approach is three tiered which is tailored towards your goals, timeframe and resource requirements.
|Tier #1 Pre-Litigation “the Demand”||At Boss Lawyers we listen to your needs and recommend the best possible solution to suit your goals. |
Often the most cost effective and successful approach, which we regularly adopt, is to send a finessed demand. In our experience 9 times out of 10 a debtor will repay the debt upon receipt of a letter of demand headed with a lawyers crest.
There are many nuances required in an effective demand which Boss Lawyers are well versed in which we will utilise in demanding finalisation of your overdue accounts.
On occasion debtors can be unresponsive, obstinate or refuse to come to the table and it may be necessary to escalate your matter to the Courts.
If taking the debt to Court is not a viable commercial option and the debt has been written off as a bad debt there may still be recovery options works exploring.
Many of our previous client have been successful in selling their bad debts. Our network of debt sale brokers provides us with access to the most effective way of selling your debt.
|Tier #2 |
Litigation “the Legal Proceedings”
|The benefit of commencing legal proceedings is that it forces the debtor to come to the table. |
Before a Court will allow a creditor to hold a trial and seek judgment for the repayment of debt, there are several compulsory steps which looks like this:
1. Plaintiff/Creditor commences proceedings by filing a Claim for the Debt;
There may also be a number of interrogatories or interlocutory steps which you may be required to comply with which is why the assistance of a lawyer will provide you with the strongest case to recover your debt.
Our electronic databases, containing precedents, greatly reduce the time and man-power required at each step of the legal proceedings. Ultimately this means lower costs for you and timely and expeditious legal services.
Once judgment is received it must be enforced through a number of processes which either compel the debtor to repay you or provide you with an interest in their real or personal property.
|Tier #3 |
Post-Litigation “the Enforcement”
|Once judgment is obtained there are wide varieties of methods used to ensure the Debtor repays what is owed to you. |
Our method, is to first provide an advise on the most suitable option available to you based on your circumstances, and based on our recommendation proceed with your chosen process.
Generally the processes are:
This is an order of the Court that an employer provides you an on-going portion of the debtor’s wage or salary until the debt is repaid.
Enforcement Warrant and Writ on Real or Personal Property
A warrant which allows a Bailiff of the Court to attend the debtors property, assess their property and take possession and sell their property and make use of the proceeds of that sale to reimburse you of your debt.
Bankruptcy or Insolvency of the Debtor
By bankrupting or winding up a company the matter of repaying the debt is taken out of the debtors hands and is placed into the hands of a trustee or liquidator who makes distributions of the debtors funds and assets to those who have lodged proof of their debts.
Examination Order An order of the Court whereby the debtors is examined by a solicitor at Court as to what assets they own. If the debtor fails to attend the Court a warrant for their arrest can be issued.
Never Letting it Happen Again
Having clear and comprehensive Terms of Trade is essential to ensuring you recover your fees as and when they fall due, ultimately saving you along that bottom line.
At Boss Lawyers we know that every business is different and that having a correctly worded Terms of Trade, tailored to suit your goals and business strategies, takes you a step further to being ahead of your competitors. Whether you require your Terms to be reviewed to ensure that they are water-tight or need Terms of Trade prepared and implemented into your business practice, Boss Lawyers can you streamline your business.
In one concise document our Terms of Trade can assist you in:
- indemnifying you for legal and mercantile agent fees in recovering debts owed to you;
- providing personal guarantees for your services;
- enable you to charge interest for your overdue fees;
- providing clear terms of payment;
- placing you in a position to register a security interest on the Personal Property Securities Register and registering your security interest on the Register;
- identifying any liabilities or any terms which pay be unenforceable such as penalties;
- retaining your title in goods; and
- ensuring any clause, unique to your business, is appropriately worded to ensure its enforceability.
If you are tired to contacting debtors on a day to day basis for repayment of your their outstanding debt contact Boss Lawyers for a consultation to see how we can help you.