Debt Collection Legal Action
With Macquarie Collections, you receive personalized assistance from a dedicated account manager who understands your specific requirements and unique situations. Your assigned account manager will carefully assess your debt situation and offer guidance on the most efficient and economical course of action. They will also collaborate with our internal legal team to handle the necessary court judgment debt collection procedures. If you’re wondering what can debt collectors do if you don’t pay Australia, our team can provide clarity on your specific situation.
What does debt collection litigation involve?
After initial attempts, including letters of demand and telephone calls, if the desired resolution is not achieved, your dedicated account manager will recommend pursuing legal action if they deem it the most appropriate and cost-effective course given your debt situation. Wondering what can debt collectors do if you don’t pay Australia? We’ll outline the legal options available to enforce debt collection.
STEP ONE: Statement of Claim / Summons
The initial phase of commencing legal proceedings involves filing a Statement of Claim or Summons, which outlines the particulars of the outstanding debt being pursued. Once served to the debtor, the court mandates a 28-day period for the debtor to respond, either by disputing the claim or making payment, before you are able to proceed with a judgment.
STEP TWO: Judgment
After expiry of 28 days after service of the Statement of Claim, if, no defence is filed, or a request for further and better particulars is not received or the dispute is not resolved (in a lot cases once the Statement of Claim is served debtors become more willing to negotiate) you can obtain a default judgment. The default judgment is a total of the debt plus fixed legal costs on obtaining default judgment and interest. This default judgment can negatively affect the debtor’s credit rating. Upon obtaining a default judgment, there are various avenues available for debt recovery (options outlined below). Your account manager will provide guidance on the most appropriate steps to pursue in this regard.
What are some options to enforce Judgment to collect a debt?
A writ of execution is a court order for debt recovery that authorises, if the debtor fails to pay the judgment debt, a sheriff or other authorized officer to seize the debtor’s personal property or assets in order to sell and satisfy the outstanding judgment debt.
A bank garnishee is a debt collection legal process where a creditor obtains a court order to collect a debt owed by a debtor directly from the debtor’s bank account. It allows the creditor to instruct the debtor’s bank to freeze funds in the account up to the amount owed, which is then transferred to the creditor to satisfy the judgment debt.
The Examination Notice notifies the debtor of the court’s decision regarding the judgment and mandates them to complete financial forms detailing their financial information. These forms must be returned to the creditor or debt collection agency.
Should the debtor fail to respond, they are summoned to court where a court official and our agents can ask them questions and require the production of relevant documents about their financial situation, including their assets and liabilities.
The debtor is served with a Bankruptcy Notice, allowing them 21 days to respond. If no response is received, the next step is enforcing legal action to collect debt outstanding; this is done by filing a Creditors Petition seeking orders to declare the debtor (individual) bankrupt. This step is typically taken when other methods of debt recovery have been unsuccessful.
A Statutory Demand gives the Debtor Company a 21-day period to settle the debt or negotiate a payment plan. If there is no response within this timeframe, the next step involves continuing to enforce debt collection litigation by filing an application to wind up the debtor company.
What are the expenses associated with enforcing a Court Order for debt recovery (Judgment)?
What can debt collectors do if you don’t pay Australia, and how much does it cost? Carrying out legal action does not have to be a costly experience, working with our experienced debt recovery team ensures you get the best solution. It’s worth noting that many legal enforcement costs are recoverable and therefore included in the amount due by the debtor on obtaining a Judgment. Contact our team today to gain clarity on your specific situation.
Get Started with Our In-House Legal Team
Are you ready to reclaim what’s rightfully yours? Your dedicated account manager will guide you through the debt collection legal process, including answering questions like what can debt collectors do if you don’t pay Australia. We also have an inhouse legal team who are very experienced and proficient in assisting you in collecting your debts. Our team is committed to helping you understand the necessary steps and maximize your returns.
EMAIL: INFO@MACQUARIECOLLECTIONS.COM.AU
PHONE: 1300 645 080