Business & Corporate Lawyers › Debt Recovery & Commercial Litigation
Debt Recovery Lawyers — Unpaid Invoices. Commercial Disputes. Results.
Unpaid invoices, disputed debts, and unresolved commercial disputes damage cash flow and business relationships. A commercial lawyer pursues debt recovery efficiently — from demand letters through to judgment and enforcement — and defends businesses against unjust or inflated commercial claims. The right legal approach recovers more, faster, at lower cost.
⚠ Limitation periods for debt claims are 6 years from the date the debt fell due. Statutory demands must be responded to within 21 days — failure to comply creates a presumption of insolvency. Act before deadlines pass.
What We Help With
Debt recovery and commercial disputes — from demand to enforcement.
Demand Letters & Pre-Litigation Recovery
A formal demand letter from a lawyer often resolves commercial debts without litigation — the cost of a letter is a fraction of the cost of court proceedings. A lawyer sends a properly worded demand specifying the amount owed, the legal basis for the claim, and the consequences of non-payment — giving the debtor a final opportunity to pay before proceedings commence.
Statutory Demands (Company Debtors)
Where the debtor is a company, a statutory demand under s459E of the Corporations Act is a powerful tool — if the company fails to pay or have the demand set aside within 21 days, there is a presumption of insolvency, enabling the creditor to apply to wind up the company. A lawyer serves a properly formatted statutory demand and manages the follow-up winding-up application where necessary.
Court Proceedings — Local, District & Supreme Court
Where a debt is disputed or the debtor does not pay after a demand, court proceedings are necessary. The appropriate court depends on the amount — NCAT/small claims tribunals for small amounts; Local Court (up to $100,000 in most states); District Court (up to $750,000 in most states); and Supreme Court for larger claims. A lawyer files and manages the proceedings to obtain judgment efficiently.
Judgment Enforcement
Obtaining a judgment is only the first step — a judgment that is not enforced has no practical value. A lawyer enforces judgments through: examination of the judgment debtor (to identify assets); garnishee orders (requiring a third party holding money for the debtor to pay the creditor); writs of execution (seizure and sale of assets); and charging orders over real property.
Defending Commercial Claims
Where a business has been served with a commercial claim — including an inflated debt claim, a disputed invoice, or an aggressive breach of contract claim — a lawyer assesses the merits of the claim, identifies defences and cross-claims, and represents the business in proceedings. Early defence advice prevents businesses from settling claims they could have successfully defended or significantly reduced.
Commercial Mediation & Dispute Resolution
Most commercial disputes settle — the question is when and at what cost. Early mediation (before significant legal costs are incurred) often produces the same commercial outcome as a later settlement at a fraction of the cost. A lawyer represents businesses in commercial mediation — preparing the position paper, negotiating effectively, and advising on the merits of settlement vs. continuing the dispute.
What the Law Says
Debt recovery and commercial litigation — the legal framework.
Limitation periods — when time runs out on debt claims
In most Australian states, the limitation period for a simple contract debt claim is 6 years from the date the cause of action arose (generally, the date the debt fell due). Once the limitation period expires, the claim is statute-barred — the court will not hear it. In NSW, the Limitation Act 1969 provides for a 6-year period; similarly in Victoria (Limitation of Actions Act 1958) and most other states. The clock can be reset if the debtor acknowledges the debt in writing or makes a part payment. A creditor who delays pursuing a debt claim risks losing the right to recover it.
Statutory demands — the mechanics and risks
A statutory demand under s459E of the Corporations Act 2001 requires a company to pay a debt (minimum $4,000) within 21 days. If the company fails to comply and does not apply to have the demand set aside, the creditor can apply to the court to wind up the company on the grounds of insolvency (s459P). The presumption of insolvency created by non-compliance with a statutory demand is almost impossible to rebut. However, statutory demands must be correctly prepared — any defect in the demand (including ambiguity about the debt, insufficient time, or an offset claim) can result in the demand being set aside. A lawyer ensures the demand is properly prepared and follows up with a winding-up application where needed.
Summary judgment — obtaining judgment without trial
Where a debt claim is clear and the defendant has no genuine defence, a creditor can apply for summary judgment — a court order entering judgment without a trial. Summary judgment is available where the court is satisfied that the defendant has no arguable defence to the claim. Most straightforward debt recovery matters (unpaid invoices, dishonoured cheques, loans with clear documentation) are suitable for summary judgment. A lawyer identifies whether the case is appropriate for summary judgment and prepares the application efficiently.
Freezing orders — protecting assets pending judgment
Where a debtor is dissipating or transferring assets to avoid paying a debt, a creditor can apply on an urgent basis for a freezing order (Mareva injunction) — preventing the debtor from dealing with specified assets or assets up to the value of the debt. Freezing orders can be made against assets held in Australia or (in some cases) overseas. They can be made without notifying the defendant (ex parte) in urgent cases. A lawyer obtains freezing orders on an urgent basis where there is evidence that the debtor is hiding or transferring assets.
Costs — who pays in commercial litigation
The general rule in Australian commercial litigation is that costs follow the event — the unsuccessful party pays the successful party's legal costs (on a party-party basis, typically 60–70% of the successful party's actual costs). This rule is not absolute — courts have a broad discretion to make different costs orders where the circumstances warrant. Calderbank offers (settlement offers not accepted by the other side) can affect costs orders — a party who unreasonably refuses a reasonable settlement offer may be ordered to pay costs on an indemnity basis. A lawyer advises on settlement strategy and the costs implications of continuing to litigate.
Security for costs — protecting against impecunious plaintiffs
Where a plaintiff bringing commercial litigation is a company that appears to have insufficient assets to pay the defendant's costs if the claim fails, the defendant can apply for an order for security for costs — requiring the plaintiff to pay a sum into court (or provide a bank guarantee) as security for the defendant's costs before the proceedings continue. This is particularly relevant where the plaintiff is a company with few assets, or where there is reason to suspect the company may be wound up before the litigation concludes. A lawyer applies for security for costs to protect a business defendant against a claim it cannot ultimately collect costs on.
How It Works
One request. Debt recovered efficiently.
Tell us the amount owed, how long it has been outstanding, whether the debtor is an individual or company, and whether the debt is disputed. A lawyer contacts you for a free consultation and advises on the most efficient recovery approach.
Submit Your RequestTell us about the debt
Tell us: the amount owed; how long it has been outstanding; whether the debtor is an individual or company; whether the debt is disputed or acknowledged; and what steps you have already taken to recover it.
Matched to a commercial litigation lawyer
Your request is matched to a lawyer experienced in commercial debt recovery and litigation — including statutory demands, court proceedings, and judgment enforcement in your state.
Demand, proceedings, and enforcement
A lawyer sends a formal demand, commences court proceedings if necessary, obtains judgment, and pursues enforcement — recovering the debt as efficiently as possible.
Common Questions
Debt recovery — frequently asked questions.
A company owes me money — should I use a statutory demand or take them to court?
A statutory demand is often the faster and more powerful option for undisputed debts owed by a company — the threat of winding up frequently produces payment within the 21-day period. However, statutory demands are not appropriate where the debt is genuinely disputed — if the debtor has an arguable offsetting claim or dispute about the debt, the court may set aside the statutory demand (and order you to pay costs). For genuinely disputed debts, court proceedings are the appropriate route. A lawyer advises on which approach is appropriate based on the specific facts — and whether the debt is likely to be disputed.
I've obtained a judgment — the debtor still hasn't paid. What now?
A court judgment gives you the legal right to recover the debt — but does not automatically result in payment. Enforcement options include: examination of the judgment debtor (requiring the debtor to attend court and answer questions about their assets and income); garnishee orders (requiring a bank, employer, or other third party holding money for the debtor to pay the creditor instead); writs of execution (the sheriff seizes and sells the debtor's assets); and charging orders over real property (registering a charge over the debtor's property that must be paid on sale). A lawyer advises on the most effective enforcement mechanism based on what assets the debtor appears to have.
The debt is only $15,000 — is it worth going to court?
Potentially — but the economics depend on the cost of recovery relative to the amount owed. Many state courts have small claims or minor civil claims divisions with simplified procedures and capped costs — designed for disputes of this size. In NSW, the Local Court handles claims up to $100,000; many cases of $15,000 can be resolved through the Civil Claims Division with lower filing fees and without extensive legal representation. A lawyer advises on the cost-effective options for your specific amount and jurisdiction — and whether the debtor has assets to make enforcement worthwhile.