Get debt help & debt relief with a free debt consolidation program.
Consumer credit counseling services offer free credit counseling.
|
|
Use credit counseling services to consolidate debt & be debt free.
Get debt help & debt relief with a free debt consolidation program. Consumer credit counseling services offer free credit counseling. |
|
Credit counseling will help you get out of debt |
debt recoverySmall Claims Debt Recovery - WAIntroduction When chasing payment for goods or services provided the first step is generally to send a letter of demand to the other party advising them of the dispute and the money outstanding and giving them a defined period within which to settle the matter or else face legal action. For assistance with drafting a letter of demand see Arts Law's Information Sheet "Letter of Demand". Taking legal action If the response to your letter of demand is unsatisfactory, you must decide whether to proceed with your threat of legal action or write off the debt. If the debt is relatively small - say under $2,000 - many people decide to write off the debt because of the perception that it is too difficult and expensive to pursue, especially if lawyers are retained. However, a "do it yourself" option is available. All State and Territory courts in Australia offer a small claims division of their local court or tribunal that provides a simple debt recovery procedure. Note that there is a time limit on bringing an action for debt recovery, which is generally 6 years from the date the debt first accrued. What is a small claim? A small claim is a claim in respect of a sum of money, goods purchased or delivered, labour or a combination of these. It generally applies to a claim up to an amount of between $2,000 and $6,000 depending on the State or Territory in which the legal action is conducted. To sue or not to sue? Although small claims debt recovery is a relatively simple procedure to follow, certain matters should be given consideration before proceeding. Debt recovery action involves a two-step procedure. Firstly, you must negotiate a settlement or obtain a judgment in your favour from a court or tribunal. Secondly, you must actually recover the money owed to you, which may involve taking enforcement action against the debtor. Briefly, these measures include obtaining a writ of execution against the debtor's property, securing a garnishee order against the debtor's wages or bank account, or (but this is uncommon with small claims) forcing the debtor into bankruptcy. It is important, therefore, to first assess whether the debtor will have the ability to pay before commencing legal action. If the debtor has a number of creditors seeking payment of debts and is basically insolvent (ie. unable to pay their debts) it may not be worth pursuing legal action. If, after a company search, you find that the company is in the hands of a receiver or liquidator, contact that person direct. Where there is a genuine dispute over the facts and the evidence to support your claim is not strong, consider whether to proceed further. If your claim is unsuccessful and the other party retains a solicitor to represent them (although this is not common in small claims), the party will apply for a legal costs order against you. Please note that the Arts Law Centre cannot represent you at these proceedings nor draft your statement of claim, but we can advise you as to your rights in an arts related matter both before and during any legal action you pursue. If the debt is over the limit allowed provided for the small claims division you will probably require legal representation. Arts Law can assist with referrals to an appropriate solicitor. Settlement It is generally worth the effort to settle the matter out of court as this is unquestionably preferable to spending time and money on court proceedings. Commencing a small claims action does not prevent the parties from settling the dispute between themselves at any time. Who do I sue? A small claims action can be brought against a person (sole trader), a group of people (partnership) or a corporate entity (company, incorporated association). If the debtor is trading under a business name you need to do a business name search to identify the owner of the business. This can be done by carrying out a search at the Business and Consumer Affairs Office (or its equivalent) in your State or Territory or using the Australian Securities and Investments Commission's National Names Index which can be accessed via their website at http://www.asic.gov.au. If the debtor is a company - for example, Fantasy Dressers Pty Ltd - any business documents (eg. invoices, business letters, etc.) should have its nine digit Australian Company Number (ACN) after the company name. A company search, using this ACN, should be conducted through ASIC to identify the registered office address at which to serve the claim as well as to ensure that the company is not in liquidation. For more information about debt free and debt relief, click here. |
|
||||||
|
home page free credit counseling and debt analysis credit counseling consumer credit counseling consolidate debt debt counseling debt free debt help free debt consolidation debt consolidation service debt consolidation company get out of debt contact us Using your home equity to consolidate debt Communicating about consumer credit counseling Find out what debt consolidation services are available |
| Copyright Credit Counseling Group All rights reserved. |
