Debt recovery in 9 steps
Cash flow is the lifeblood of any business. Often businesses can be crippled when large sums of money are owed and have not been recovered. If payment is not made as requested in the letter of demand, Court proceedings can be immediately filed.
9 steps in the debt recovery process
- The defendant must file a Notice of Intention to Defend and Defence within 28 days. If they do not the plaintiff may apply for default judgment.
- The defendant may file a Counter Claim to the plaintiff’s Claim and Statement of Claim when filing their Notice of Intention to Defend and Defence.
- The plaintiff may then file a Reply to the Defence of the Defendant within 14 days.
- If the Defendant filed a Counter Claim the Plaintiff may file an Answer to the Counter Claim when filing their Reply to the Defendant’s Defence.
- If the Plaintiff files an Answer to a Counter Claim the Defendant may then file a Reply to that Defence within 14 days.
- Both the Plaintiff and Defendant must then disclose to the Court all of the documents and evidence that they intend to reply upon when the matter proceeds to Trial.
- The matter will then be set down for a Directions Hearing that both parties must attend (this is generally only in Magistrates Court).
- If the matter is not resolved at a Directions Hearing the matter will be set down for Trial.
- Once the matter is heard at Trial a decision (judgement) will be reached.
How we can help
Once Judgment is entered, a number of procedures are available to enforce it. At Streten Masons Lawyers, our debt recovery lawyers can assist you with:
- Writs (seizure of goods to sell in order to repay the debt)
- Examination Summons (requiring the debtor to attend Court to display how they will satisfy the Judgement) and
- Orders (whereby the Court can order a third party to pay money to a creditor instead of a debtor).
- Filing an Originating Process. If the Court is satisfied that the company is trading insolvent, it can then appoint a liquidator.
We use our debt collection experience to your advantage. Contact us today to discuss how we can help you in the area of debt recovery.