Civil litigation is the process of dispute resolution between members of a community through the court system. Civil law grants to individuals the right to sue for compensation or for specific action in matters such as breach of contract, defamation and negligence.
We are experienced litigation lawyers and have proven experience across a wide range of civil suits including:-
- Commercial litigation
- Business litigation
- Employment litigation
- Unfair dismissal
- Divorce disputes
- Will disputes
- Debt recovery
- Building and property disputes
- Dividing fence disputes
- Breach of contract
- Breach of copyright
Debt Recovery Process
To protect your cash flow you need to ensure that your business can collect bad debt. This is a common area of business activity and there is a well established legal process for debt collection for businesses.
The Process of Recovery of Bad Debt
Letter of demand is sent to the debtor. This debt collection letter needs to be legally admissible and so must include: specific details of the debt, a request that payment be made by a certain date; and a warning that debt recovery options will be pursued if payment is not received by this date.
Suing for debt. Court proceedings commence with the filing of a Statement of Claim. The Court handling the matter depends on the amount of the debt and the forms required vary so it’s important to seek legal advice at this stage.
The way that the debtor responds to the Statement of Claim determines the next steps. They may agree to an instalment order, they may not respond at all in which case a Court Judgment will be obtained or they may file a Defence.
The Court has a range of options available to proceed with the collection of your money. These include:
- Seizing property, where the debtor’s goods are seized and sold at auction
- Selling Real Estate
- Summons, where the debtor has to attend a public Court examination to explain their assets and liabilities
- Garnishee Order, where a percentage of their wages are given to you
- Bankruptcy/winding-up proceedings
How we can help
We have experienced business lawyers who are completely at home with the legal processes involved in debt recovery services. We can help you at any stage of this process of recovering a business debt, whether it is helping you write an effective and legally sound letter of demand, or pursuing the matter through the Court system. Our debt lawyers are familiar with the process of enforcing Judgment and can manage the process right through to bankruptcy or company winding up proceedings if need be. We are also well aware of the costs of debt litigation and can advise you on whether it is commercially viable to proceed to Court.
Never letting it happen again
One way to protect against bad debt is to review your contracts, trade agreements and terms of trade. We can help you make sure that your terms are clear and your processes solid so you can avoid lengthy and costly litigation proceedings in the future.
Contact us to discuss the specific details of your litigation or business debt matter with an experienced lawyer.