We assist clients in recovering debts efficiently and effectively, utilising a range of legal strategies. Our approach aims to maximise recovery while minimising costs and preserving business relationships where possible.

Overview

Debt recovery is a critical aspect of business operations in Australia, particularly for small to medium enterprises where cash flow is vital. The legal framework for debt recovery includes various state and federal laws, such as the Australian Consumer Law for consumer debts and the Personal Property Securities Act 2009 for secured debts. The process can range from simple demand letters to more complex litigation or insolvency proceedings.

In recent years, the debt recovery landscape has been influenced by factors such as the COVID-19 pandemic, which led to temporary changes in insolvency laws and increased focus on hardship considerations. Additionally, the rise of alternative dispute resolution methods has provided new avenues for resolving debt-related conflicts outside of traditional court processes.

Our approach

We adopt a strategic and commercial approach to debt recovery. Our first step is always to assess the viability of recovery, considering factors such as the debtor’s financial position, the strength of supporting documentation, and the cost-effectiveness of various recovery methods. We then develop a tailored strategy that aligns with our client’s commercial objectives and risk appetite.

Our services cover the full spectrum of debt recovery processes. This includes issuing formal demands, negotiating payment arrangements, and where necessary, initiating legal proceedings. We are experienced in various forums, from local courts to superior courts, depending on the debt amount and complexity of the matter.

We also advise on preventative measures to minimise future debt issues. This may include reviewing and strengthening terms of trade, implementing effective credit management systems, and advising on security interests under the Personal Property Securities Register.

Throughout the process, we maintain clear communication with our clients, providing regular updates and seeking instructions on key decisions. Our goal is to achieve the best possible outcome while managing costs and preserving business relationships where appropriate.

Representative experience

• Successfully recovered a substantial debt for a wholesale supplier through a combination of negotiation and strategic use of statutory demands, resulting in full payment without the need for court proceedings.
• Represented a construction company in Federal Court proceedings to recover progress payments, securing a favourable judgment and costs order against the debtor.
• Advised a financial services provider on streamlining their debt recovery processes, including implementing new procedures for early identification of potential defaults and more effective use of the PPSR.
• Assisted a landlord in recovering significant rental arrears from a commercial tenant, negotiating a structured payment plan that allowed the tenancy to continue while ensuring full debt recovery.
• Successfully defended a client against an unfair preference claim by a liquidator, preserving a substantial payment received prior to the debtor company’s insolvency.
• Guided a small business through the process of bankruptcy proceedings against a debtor, resulting in the appointment of a trustee and eventual partial recovery of the debt.