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Methods Of Recovering A Debt Part II

Hiring a debt collection agency can be a fast and efficient way to recover debts from a client. A lot of times when the creditor has already tried to get in contact with the debtor through phone calls and emails, the business will set out a warning to take legal action if the debt is not paid within the suggested time frame. Once all the company’s efforts to retrieve the money itself have been unsuccessful, this is mostly when a debt collection agency is hired to collect the receivables.

As is the procedure, the professional will then send the Letter of Demand and recommend the debtor to complete the full payment within a given deadline, which is up to 21 days. The debt collector may issue Summons and seek a Judgement Order if the Letter of Demand is not complied with.

Followed by the Letter of Demand legal action may be taken by filing a Statutory Demand. A Statutory Demand can only be issued to a debtor if the total amount owed exceeds $2,000. There should also not be a genuine dispute about the existence of the debt between the parties, but especially if the debt is based on a court judgment, there is an automatic presumption that there is no dispute as to the existence.

The Courts have stated that businesses, which come forward with Statutory Demands, must ensure the demand is expressed in clear, correct and unambiguous terms. The demand must be committed in writing, in the prescribed form and accompanied by an affidavit that would verify the debt is due and outstanding. The Statutory Demand must be served to the debtor’s registered address, or a copy of the document may be sent personally to a director of the company. The debtor then has 21 days from the date of having received the demand, to either pay the owed amount or make an application to set aside the Statutory Demand.

If the debtor fails to comply with a Statutory Demand or have the demand set aside, a presumption can be made that the debtor’s company is insolvent. A creditor can then proceed to issue a Winding Up Application to liquidate the debtor’s company, which will then become public information.

Our next blog in this series will discuss the advantages and practices of Statutory Demand further and advise on how to protect businesses in the construction field from having to recover a debt.

If you would like to learn more about the debt collection services we offer, contact us now. We have over 30 years of experience providing professional and discreet debt collection solutions for clients of all sizes and across all industries.


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  • I have worked closely with Boston Commercial Services for over twenty years across four different companies and would not work with anyone else in regards to helping me with my outstanding accounts. Whenever I have started a new role, the first thing I am asked is, “How would you go about cleaning up our accounts receivable ledger?” My answer is always the same – “The first thing we need to do is call Boston Commercial Services”.

    Voytek Bradford

    Freedom Foods Group Limited (National Credit Manager)

  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services prides itself in offering specialised, professional services, through a highly experienced team of debt collector, with personalised client attention.