In this podcast, PD Law Lawyer Jemma Ible discusses the debt recovery process and what to do if a person or company owes you money or is required to compensate you.
Dan: Thanks for joining us for this edition of the PD Law Podcast, where I talk with PD Law lawyer, Jemma Ible, about the debt recovery process and what to do if a person or company owes you money or is required to compensate you. So at the outset, Jemma, what is the process of a debt recovery matter and how can you help someone that’s looking to recover a debt?
Jemma: Hi Dan, this is an excellent question. Sometimes when you’re wrong, it’s hard to know what to do next and what rights you have. Here at PD Law, we will assist and guide you to understand the rights you have under the law. We understand that contacting a lawyer can be daunting and usually comes with the perception that it will cost you a fortune.
When you inquire with us, we’ll give you a call to discuss your matter, and from the outset, we’ll be able to analyse your case and advise you on whether you have a good chance of recovering the debt. We do not want to rack up unnecessary costs on your behalf, and we’ll let you know if we believe that your chances of success are limited.
Dan: Jemma, that’s good to know. But what actually happens after I engage you to act on my behalf in a debt recovery matter?
Jemma: So once you confirm that you wish to engage us to act on your behalf, we request that you send us all correspondence in any documentation that you have that will support your claim. From here, we will be able to review all the relevant material and correspondence and draft a comprehensive letter to the debtor.
This will include outlining the facts and what has occurred to date, the breach of any agreement, the debtor’s obligations under the law to repay the debt, and how the matter is to be resolved. We will finalise the letter by demanding to the debtor the payment be made. We find that once the debtor receives our letter of demand, they will repay the debt as they understand that if they don’t, we’ll be seeking your instructions to initiate proceedings in the magistrate’s court or through the relevant tribunal or authority.
Dan: Now, I’m assuming that you actually might see this occur quite regularly, but what happens if the debtor doesn’t respond? Then what?
Jemma: If the debtor does not respond to our correspondence within 14 days, we will advise you on your options and recommend how you should proceed with your matter. If the debt is less than 25,000, you will be able to lodge a claim with the Queensland Civil and Administrative Tribunal, for short, QCAT. QCAT can’t decide disputes involving claims worth more than 25,000.
Therefore, if your claim is more than this amount, you may choose to reduce the claim to 25,000 to enable it to be lodged with QCAT. QCAT is more of a self-help process, and therefore it is not as expensive as lawyers are not allowed to appear on either party’s behalf. However, we can still assist behind the scenes with drafting your claim and any other relevant documents that you will require.
Our team here at PD Law is experienced in QCAT matters, and we will be able to assist you in following the correct procedures to ensure you receive the best outcome. Alternatively, if the debt is more than $25,000, you may wish to pursue the matter through the appropriate court.
The magistrate’s court will consider matters up to an amount of $150,000. This option is a more formal approach where rules of evidence apply. Although more expensive, you are entitled in certain circumstances to have a portion of your legal fees paid by the other side, depending on the success of your case.
Dan: Jemma, if anyone’s got any questions about recovering a debt, they can reach out to you and the team at PD Law?
Jemma: Absolutely, Dan. Our team of experienced lawyers will be able to guide you through the debt recovery process and explain your options to you to recover the debt. Failing to maintain control of debtors can result in significant crippling cash flow to you personally or to your business. If you own a business, it’s important that you recover all debts owed to you to ensure that you are able to maintain financial stability. You can give me a call at any time to talk about any debtors that you are struggling with.
Dan: Now, that was lawyer, Jemma Ible from PD Law. If you’ve got any questions about commercial matters, reach out to the team at pdlaw.com.au.
Disclaimer: This podcast has been transcribed using AI. There may be errors that were lost in the translation.