We have a system whereby debt collection can be effected at very affordable rates . In effect, no legal fees are payable except in circumstances where the claim for recovery of the debt becomes contested, or otherwise where legal intervention is required. Needless to say, our scale of costs are recoverable from collection. Otherwise, an automatic process is carried forward for a very nominal processing fee. Read on.

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Collection processes can be commenced in different courts in different ways depending on:

1. The amount involved, i.e., up to $60,000 in the Local Court and over this amount in the District Court.
2. Depending on whether the debtor is a company or an individual. In the case of an action against an individual, it is a requirement that the collection process be commenced with a letter of demand and if the debtor fails to comply with the demand, then you are entitled to issue a statement of claim.

There is no assurance given that the process will guarantee payment, for example, a client may have insufficient means to meet the debt. Or you may not be able to locate the person.

If the debtor is a company, it may be that you can commence the process by way of a Creditor's Statutory Demand (a winding up notice). This is a document which demands payment and states that in the event of a failure to make the payment, then the company has committed an act of insolvency, and is deemed insolvent, which will enable you to proceed to wind up the company. This can be a very powerful tool.

Generally speaking, one will only start with the winding up notice if there were some clear and unequivocal acknowledgment of the existence of the debt. These proceedings are conducted (by our office) in the Federal Court and that Court does not entertain heavily debt disputes in that jurisdiction. If the process has been commenced in this way, and the debtor, through his solicitor or otherwise, advises that he/she /it intends to make application to set aside the demand, it is often wise to withdraw it and commence by way of a letter of demand and statement of claim.

If you proceed by way of a letter of demand and statement of claim, and obtained a Judgment, then the winding up process can proceed and will be entertained by the Court.

It is also to be remembered that winding up the company has in some ways has quite the opposite effect to achieving your objective, that is to say, being paid, because if the company is wound up and a liquidator is appointed, your prospect of repayment is diminished by the liquidator's capacity to realise assets and pay you amongst other creditors.

Winding up is but one way of executing Judgment against the company.

Once Judgment is obtained, there are a variety of ways in which a Judgment can be executed. An individual can be issued with a Bankruptcy Notice, which has in many ways the same effect as a winding up notice. That is to say, if the debtor fails to pay within the time prescribed by the Notice, then they have committed an act of insolvency, which will entitle you to proceed to a bankruptcy petition. Once again a very powerful tool.

Winding up and bankruptcy are pressure mechanisms which normally bring pressure to bear on debtors and causes them to respond to the extent that they are able. It is to be noted that whilst these proceedures are highly effectice they are expensive procedures and filing fees are high.

The procedures available otherwise in the Local and District Courts are:

(a) Garnishee, that is to say, requiring the debtor's bank or one of his debtor's to pay you;
(b) Writ of execution, which requires the sheriff to sell goods and chattels and pay you from the proceeds of sale.
(c) Sometimes, in order to determine which way to proceed, one can proceed to have a debtor examined, through the issue of an examination summons. This requires the debtor to come to Court and outline all his assets and liabilities, income and outgoings, so as to then enable you to make your choice as to which way to go in terms of executing Judgment.

This service is only limited to obtaining Judgment. All methods of executing Judgment are charged separately from the Schedule scale.

Similarly, you are required to adhere strictly to the steps and stages set out below and any divergence from that procedure, which requires the giving of advice or other assistance by solicitors in the practice will be charged at their normal rates (see below- SOLICITORS' SCALE OF FEES).

DEBT COLLECTION PROCESSING FEES (add GST)

To operate this system you must first pay an establishment /file opening fee for each new matter  of $180.00 + GST : exceptions will be made only upon application by email  adressed to This e-mail address is being protected from spambots, you need JavaScript enabled to view it . Any such application must state the amount of the debt sought to be recovered.

This is a once only payment.

Letter of Demand -
$ 30.00 + GST

NSW Local Court - Statement Of Claim
$ 50.00+ GST

NSW Local Court - Notice of Motion - Default Judgment
$ 60.00+ GST

NSW Local Court - Examination Notice
$ 30.00+ GST

NSW Local Court - Notice of Motion - Examination Order
$ 30.00+ GST

NSW Local Court - Notice of Motion - Garnishee Order for Debts

NSW Local Court - Notice of Motion - Garnishee Order
$ 30:00+ GST

NSW Local Court - Notice of Motion - Writ Levy of Property
$ 30:00+ GST

NSW Local Court - Notice of Motion - Warrant for Arrest
$ 30.00+ GST

Instalment payment agreements
$100.00+ GST

Bankruptcy Proceedings

        COSTS FOR ISSUE OF BANKRUPTCY NOTICE

        Costs

             Drawing bankruptcy  filing & service                   $275.00

              Disbursements

              Lodgment fee payable to ITSA                            $400.00

             Bankruptcy search (approx)                               $  24.37

             COSTS FOR ISSUE OF CREDITOR’S PETITION

            Costs

             Estimated costs in drawing affidavits

             and creditor's petition ,filing and service of same and

             obtaining a Sequestration Order   against debtor                                                   

                                                                                         $2,500.00

              Disbursements

              Federal Magistrates’ Court filing fee

             for issue of creditor's petition for

             an individual applicant                                       $   374.00

                          OR

              Federal Magistrates’ Court filing fee

             for issue of creditor's petition for a

             corporation                                                           $   745.00

             Bankruptcy searches @ $22.00 per debtor)        $      22.00 

             Agent’s fees to file and undertake searches       $    20:

Our above costs and disbursements is based upon a uncontested bankruptcy application. As you will appreciate, there will be additional costs and disbursements incurred in the event that the bankruptcy application is contested or an application must be made to the court to obtain an order for substituted service of the creditor’s petition upon the debtor. See general scale fees below.

Company Winding up proceedings

 Costs

Preparing statutory demand,
supporting affidavit                                                            $500.00

Disbursements

Company search                                                                 $15.40

COSTS FOR ISSUE OF WINDING-UP APPLICATION

A. Costs to hearing date

Estimated costs in drawing affidavits
and application                                                               $1750.00

Disbursements

Federal Court of Australia filing fee
for winding-up application for an
individual applicant                                                         $785.00

OR

Federal Court of Australia filing fee
for winding-up application for an
corporation applicant                                                   $1881.00

Advertising notice of application (approx)                    $600.00

Costs for hearing and/or adjournment

Preparing for hearing, appearing at hearing
and obtaining winding-up order or
dismissal                                                                                           $850.00

Preparing for hearing but hearing
adjourned                                                                                           $250.00

For each subsequent adjournment                                                   $250.00

Disbursements

ASIC searches (approx)                                $30.00 

Our above costs and disbursements is based upon a straightforward uncontested winding-up application. As you will appreciate, there will be additional costs and disbursements incurred in the event that the application is contested or if negotiations are entered into and adjournments sought.

We will charge you professional fees for this type of work we do in accordance with time spent on your matter by personnel in our office as follows:

2.1 Professional Fees as follows:

(a) an hourly rate of : $ 350 (plus GST) for Mr Brown and all other qualified solicitors apart from those referred to in (b).

(b) an hourly rate of : $ 250 (plus GST) for a solicitor of less than 5 years' standing.

(c) an hourly rate of : $ 150 (plus GST) for a para-legal (i.e., a student or other unqualified person doing legal or quasi-legal work under supervision).

(d) travelling time for all of the above at half the above rates.

These rates will be proportionately charged for work involving shorter periods less than an hour. Our charges are structured in minimum 6 minutes units. Accordingly, the time charged for an attendance of up to 6 minutes will be 6 minutes and the time charged for an attendance between 6 and 12 minutes will be 12 minutes.

All Payments to be made directly to our Trust bank account :

If you receive payment (including cost claimed in any process issued by us) from a debtor you must apply moneys received firstly in payment of our costs, which will be notified to you upon request.