Debt Recovery
Effective debt recovery for businesses in Melbourne. Orange Legal Group pursues outstanding debts through demand letters, negotiation and court proceedings.
Frequently Asked Questions
- How much does debt recovery cost?
- Costs depend on the amount of the debt and the process required. A letter of demand is inexpensive and often sufficient. Court proceedings involve filing fees and legal costs, which can often be recovered from the debtor if you are successful. We provide clear cost estimates upfront.
- What is a statutory demand?
- A statutory demand is a formal notice served on a company under the Corporations Act 2001, demanding payment of a debt within 21 days. If the company fails to comply or apply to the court to set aside the demand, it is presumed to be insolvent — which can lead to a winding up application.
- How long does debt recovery take?
- A letter of demand can produce payment within days. Undefended court proceedings typically take 4–8 weeks from filing to default judgment. Defended matters take longer. Enforcement steps vary depending on the debtor's assets and responsiveness.
- What happens if the debtor says they have no money?
- If a debtor claims inability to pay, we can apply for an oral examination to compel them to disclose their assets. We can also investigate asset ownership, advise on insolvency proceedings and, where appropriate, refer to specialist insolvency practitioners.
- Can I recover my legal costs?
- In most cases, successful plaintiffs can recover a contribution to their legal costs from the debtor — though the amount recoverable depends on the court and the scale of costs. We advise on cost recovery prospects before commencing proceedings.