Practice Areas / Debt Recovery
Debt Recovery Lawyers
Recovering unpaid debts for businesses and individuals across Melbourne, Frankston and the Mornington Peninsula, and advice if you are being chased for money. Advice in English and in Polish.
Getting paid, or getting it resolved
An unpaid invoice ties up money a business needs, and the longer it sits, the harder it can be to recover. The right step is usually the least expensive one that will work: a clear letter of demand, a written payment plan, or a prompt claim while the debtor still has assets.
We act for businesses, contractors and individuals who are owed money, and for people and companies facing a demand they dispute or cannot pay. Radek Dajer manages each matter personally and can advise you in Polish.
How we help with debt recovery
Letters of demand
Formal demands that set out the debt, how it arises and a deadline for payment, and responses to demands you believe are wrong.
Court and VCAT claims
Claims in the Magistrates’, County or Supreme Court or at VCAT, including default judgment where the debtor files no defence.
Enforcing judgments
Oral examinations, warrants, attachment of earnings and debts, charging orders and instalment orders to turn a judgment into payment.
Statutory demands and bankruptcy
Statutory demands to companies, bankruptcy notices to individuals, and applications to set aside a demand that has been served on you.
From demand to judgment
Debt recovery follows a familiar sequence. The early steps cost less, and each one gives the debtor another chance to pay. At every stage we weigh the likely costs against the amount you are owed.
- Letter of demand: states the amount, how it arises and a reasonable deadline for payment. If the debtor offers to pay by instalments, we record the arrangement in writing.
- Choosing where to sue: the Magistrates’ Court hears claims up to $100,000; larger claims go to the County Court or Supreme Court. VCAT hears disputes about goods and services, with no upper limit.
- Default judgment: in the Magistrates’ Court, if no defence is filed within 21 days after the claim is served, we can apply for judgment without a hearing.
- Defended claims: in the Magistrates’ Court, disputed claims under $10,000 are generally referred to arbitration. Larger claims may go to a pre-hearing conference or mediation before any hearing.
- VCAT orders: a VCAT order for payment can be filed in a court and enforced as a court judgment.
Enforcing a judgment
A judgment does not pay itself. If the debtor still does not pay, the court can compel payment in several ways, and the right one depends on what the debtor owns and earns. Oral examinations and instalment orders are governed by the Judgment Debt Recovery Act 1984 (Vic).
- Oral examination: the debtor is summoned to court to answer questions on oath about their income, assets and debts.
- Warrant to seize property: the Sheriff can seize and sell the debtor’s goods, although basic household items are protected. Land can be sold under a warrant issued by the County Court or Supreme Court.
- Attachment of earnings or debts: an order requiring the debtor’s employer to pay you part of their wages, or a bank or other third party holding the debtor’s money to pay it to you.
- Charging orders: a charge over shares and other securities owned by the debtor, securing payment of the judgment.
- Instalment orders: the court can order the debtor to pay by instalments. While an instalment order is in force, other enforcement of the judgment is generally put on hold.
Six years can pass quickly
Most claims for a debt under a contract must be started within six years of the date payment fell due. A written, signed acknowledgment of the debt or a part payment can restart the clock, so keep a record of every payment and message.
Statutory demands and bankruptcy notices
Insolvency procedures put real pressure on a debtor, but they are blunt tools. Used against a debt that is genuinely disputed, they can backfire, and the time limits for responding are strict.
- Statutory demands: under the Corporations Act 2001 (Cth), a creditor owed at least $4,000 by a company can serve a demand. If the company does not pay or apply to set it aside within 21 days, it is presumed insolvent and the creditor can apply to wind it up.
- If your company receives one: an application to set the demand aside must be filed and served within 21 days, and the court cannot extend that time. A genuine dispute about the debt is one ground.
- Bankruptcy notices: under the Bankruptcy Act 1966 (Cth), a creditor with a final judgment of at least $10,000 that is no more than six years old can apply for a bankruptcy notice. If the debtor does not comply within 21 days, the creditor can petition the court to make them bankrupt.
- If you are being chased: we check whether the debt is owed, negotiate payment plans, defend claims and respond to insolvency notices in time. Collectors must not use undue harassment or coercion, and free financial counselling is available through the National Debt Helpline.
Owed money, or being chased for it?
Book a consultation and bring your invoices, contract or terms of trade, and any correspondence. We will explain your options and the likely costs.
Common questions
Can’t see your question? Call 1800 776 529 or send us a message.
It depends on the debt. VCAT hears disputes about goods and services, and each party usually pays its own legal costs. For goods and services claims under $15,000, VCAT generally does not allow a lawyer to speak for you at the hearing, though we can still prepare you. The Magistrates’ Court suits many unpaid invoices and loans, and a successful party can usually recover some costs.
Do not ignore it. Check whether the amount is correct and whether you have a defence or a counterclaim, then respond in writing before the deadline. If you owe the money but cannot pay at once, a written payment plan is often better for both sides than court proceedings. We can respond for you and negotiate with the creditor.
It can be effective against a company that is refusing to pay a debt it does not dispute. It is not suitable where there is a genuine dispute about the debt: the court can set the demand aside and may order you to pay the company’s costs. In that situation, a claim in court is usually the safer course.
Once a company is being wound up, you generally cannot start or continue a claim against it without the court’s permission. Instead, you lodge a proof of debt with the liquidator. If a director agreed to be personally liable for the company’s debts, or you hold a security interest registered on the Personal Property Securities Register, you may have other options, so get advice promptly.
Yes. Radek Dajer speaks Polish and can take your instructions, explain letters and court documents to you in Polish, and deal with the other side in English on your behalf. This applies whether you are owed money or being asked to pay. See our Polish-language services.
Debt recovery insights
Thinking about taking someone to court in Victoria? This plain-English guide explains which court to use, how costs work, what alternative dispute resolution involves, and what to expect from civil litigation.
When a debtor fails to pay, knowing the correct legal steps can mean the difference between recovering your money and writing off the debt entirely.