As a business owner, you may, at times, have debts that need to be recovered. This could be, at times, challenging when the debtor refuses to pay the due amounts or with other complications that make it difficult to recover the debt.
The only option for you could be to enforce debt recovery through legal action.
Pentana Stanton Lawyers have a team of experts who specialise in legal services related to debt recovery and insolvency.
At Pentana Stanton Lawyers, we have a team of legal experts who are highly experienced in handling legal matters related to debt recovery. You do not have to wait until the debt is virtually irretrievable to start taking legal action towards recovering it.
Our Lawyers can assist you at various stages of your debt recovery process, from drafting a letter of demand to legal representation in court.
There are many documents and processes that are involved in recovering your debt through legal action. These include:
Enforcement proceedings can be started after you receive the judgement. These include statutory demand if the debtor is an organisation or bankruptcy if the debtor is an individual, winding up of the company and using of enforcement warrants.
Multiple ways of using the enforcement warrants exist including redirections of earnings, payment by instalments, sale and seizure of property and so on. These complicated matters require guidance from professional debt recovery lawyers.
Strict requirements and accuracy are absolutely essential when servicing documents and making the statement of claim. The necessary information must be clearly stated. Consulting professional debt recovery lawyers at Pentana Stanton Lawyers is the best way to ensure your interests are protected.
Legal collection is cheaper than debt collection, with legal costs potentially eligible to be recouped.
In Australia, it is illegal under section 588G of Corporations Act to knowingly trade insolvent. A company must not continue to generate debt it knows it cannot pay. Insolvent trading can incur criminal charges, compensation proceedings and civil penalties.
Company’s directors can face civil penalties of $200,000 and when compensation proceedings are initiated by creditors, these can incur additional penalties. Because compensation charges have no limits on claims, at times, the consequences can be personal bankruptcy. And directors who face personal bankruptcy are disqualified from continuing to serve as director of the firm.
Criminal charges also can lead to disqualification of company’s directors if proven along with penalties or imprisonment.
Even some of the most diligently managed, experienced companies can find themselves in a situation where they have exceeded their creditor terms and unable to make repayments.
Whether entering into a voluntary administration, liquidation or receivership, Pentana Stanton Lawyers can assist.
Call us today on (03) 900 22 800.