Commercial Debt Recovery
Recovering debt
with the right leverage.
Commercial debt recovery for unpaid invoices, disputed accounts and construction payments, from an evidence-based demand through to judgment enforcement.
Commercial Debt Recovery
Recovery starts with an enforceable debt.
An overdue invoice is the starting point, not the whole case. Before recovery action begins, the contract, supply or performance evidence, invoice, payment terms, debtor identity, any dispute or set-off, limitation period and recovery prospects should be checked together. That assessment determines whether the next step should be a demand, negotiation, court proceeding or a statutory process.
The objective is payment, not procedural activity for its own sake. We match the recovery step to the amount, evidence, debtor's financial position and likely response. Insolvency procedures are reserved for debts that satisfy their statutory requirements and should not be used to pressure a debtor where there is a genuine dispute.
Our Services
Commercial debt recovery.
The correct recovery path depends on whether the debt is documented, disputed, secured and realistically recoverable. We advise creditors pursuing payment and businesses responding to claims.
Debt Assessment & Demands
Reviewing the contract, invoices, statements, correspondence and debtor identity before preparing a demand that accurately states the debt, legal basis, interest and response date.
- Contract & Invoice Review
- Letters of Demand
- Interest Calculations
- Settlement Proposals
Disputed Debts
Claims involving defective performance, disputed scope, credits, set-off, misleading conduct or a contested amount. We identify the issues that must be resolved before judgment can be obtained.
- Invoice Disputes
- Set-Off & Counterclaims
- Contract Defences
- Negotiated Resolution
Court Proceedings
Commencing and defending debt proceedings in the appropriate Victorian court, including pleadings, evidence, default judgment, mediation and contested hearing preparation.
- Magistrates' Court
- County Court
- Default Judgment
- Defended Claims
Statutory Demands
Preparing or responding to statutory demands under the Corporations Act 2001 (Cth) where the debt and company circumstances make that process appropriate.
- Creditor Demands
- Set-Aside Applications
- Genuine Disputes
- Offsetting Claims
Judgment Enforcement
Selecting enforcement steps after judgment by reference to the debtor and known assets, including oral examination, warrants, attachment processes and insolvency options where available.
- Oral Examination
- Warrants
- Attachment Orders
- Insolvency Pathways
Construction Payments
Payment claims, payment schedules, adjudication and enforcement under the Building and Construction Industry Security of Payment Act 2002 (Vic), alongside contractual recovery options.
- Payment Claims
- Payment Schedules
- SOPA Adjudication
- Judgment Registration
Recovery Process
Four decision points.
A proportionate recovery process tests both legal entitlement and practical collectability before more cost is incurred.
Verify
Confirm the creditor, debtor, contractual basis, amount, evidence, due date, dispute history and applicable time limit.
Demand
State the claim accurately, preserve legal options and create a defined opportunity for payment or a documented response.
Determine
Choose negotiation, ordinary proceedings, security-of-payment adjudication or another available process based on the evidence and debtor.
Enforce
Convert any judgment or adjudication outcome into the enforcement step most likely to produce payment at proportionate cost.
Choosing the Procedure
Not every unpaid account is the same debt.
A liquidated and undisputed company debt may support a statutory demand if the statutory requirements are met. A genuinely disputed invoice belongs in ordinary proceedings or a negotiated process. An eligible construction payment may have a faster adjudication pathway under the Building and Construction Industry Security of Payment Act 2002 (Vic).
The Magistrates' Court of Victoria hears civil disputes up to $100,000. Larger claims and particular remedies may require the County Court, Supreme Court or a federal jurisdiction. Forum, filing cost, procedural obligations and enforcement prospects should be assessed before proceedings begin.
Commercial Demand
A defined pre-action opportunity to pay, explain the dispute or propose a documented arrangement.
Ordinary Court Claim
The usual path where liability or amount is disputed and evidence must be determined.
Statutory Demand
A corporate insolvency process for qualifying company debts, not a substitute for litigating a genuine dispute.
Security of Payment
A deadline-driven statutory pathway for eligible Victorian construction work and related goods or services.
Enforcement
Post-judgment processes selected by reference to the debtor's assets, income, bank debts and solvency.
Statutory Demands
A disputed debt requires the correct forum.
A company has 21 days to comply with or apply to set aside a statutory demand. A genuine dispute, offsetting claim or qualifying defect may support a set-aside application. Creditors should not use the process to bypass an unresolved dispute, and companies served with a demand should obtain advice immediately.
Common Questions
Debt recovery, answered.
These answers address the first procedural and commercial questions that arise when an invoice remains unpaid or a recovery demand is received.
What documents should I provide for a debt recovery claim?
Provide the signed contract or accepted terms, purchase orders, invoices, statements, delivery or performance records, correspondence about the work and payment, any complaint or credit request, and the debtor's correct legal name. For a running account, a clear transaction history and calculation of interest are also important.
Is a letter of demand required before court proceedings?
Not in every matter, but a properly framed demand is often useful. It can define the claim, correct debtor details, identify the evidence, satisfy a contractual notice requirement and create a settlement opportunity. Urgent relief, a limitation deadline or a statutory process may require a different sequence.
What if the debtor says the invoice is disputed?
The stated dispute should be tested against the contract and evidence. A genuine dispute may require negotiation, mediation or ordinary court proceedings. It also affects whether a statutory demand is appropriate. A bare assertion does not necessarily defeat a claim, but it should not be ignored.
What is a statutory demand?
A statutory demand under the Corporations Act 2001 (Cth) s 459E is served on a company for a debt at or above the statutory minimum. The company has 21 days to comply or apply to set the demand aside. Non-compliance can create a presumption of insolvency for a winding-up application.
Which court hears a commercial debt claim in Victoria?
The Magistrates' Court can hear civil disputes up to $100,000. Larger claims and claims seeking particular equitable or urgent remedies may proceed in the County Court or Supreme Court. Federal jurisdiction can also matter. The amount, parties, cause of action and relief determine the appropriate forum.
Can legal costs and interest be recovered?
Interest may arise under the contract, statute or court rules. A successful party may obtain a costs order, but party-and-party costs usually do not reimburse every dollar spent. Contractual recovery clauses also require interpretation and may be limited by law. Costs and interest should be calculated conservatively in any demand.
How is a judgment enforced?
A judgment does not collect itself. Victorian enforcement options include oral examination, warrants to seize property, attachment of debts, attachment of earnings in qualifying cases and instalment processes. Corporate or personal insolvency steps may also be available if their separate requirements are met.
Can SOPA be used instead of ordinary debt recovery?
The Building and Construction Industry Security of Payment Act 2002 (Vic) provides a separate pathway for eligible construction work and related goods or services. It may permit a payment claim, adjudication, suspension rights or court enforcement on short deadlines. Eligibility and the correct statutory step should be checked before relying on it.
What if the debtor offers a payment plan?
A payment plan can be sensible if it is documented properly and supported by realistic dates, default consequences and any available security. Informal promises often delay recovery without improving the position. We prepare settlement terms that preserve enforcement options if payment stops.
Can I recover a debt from a guarantor?
Possibly, if there is a valid guarantee and the demand complies with its terms. The guarantor's liability may depend on the wording, variations to the underlying agreement, notices and any defences. We review the guarantee before issuing a demand or commencing proceedings.