Large Debt Collection

In general, a large debt in the debt collection industry is defined as being over $50,000.00 When this ammount of money is owed to you, there are a few steps you should take immediately to protect your interests. You should seek legal advice immediately. We have access to legal services available on this site which can assist you with finding a solution to this problem. In general, however, a claim this large will be out of the jurisdiction of a magistrates court or a small claims tribunal and will go straight to the district court for determination. This is because under the rules of jurisdiction of most states of Australia, matters involving this amount of money must be dealt with by a District court in the first instance.

Obviously the same rules apply to a large debt as they do with a small debt which is that you must keep all relevant records and documentation which will allow you to prove the existence and non-payment of the debt in the future and rebut any claims the debtor may have about the validty of the debt, which they may raise in court. At this stage it can also often be helpful to include a chronology of the non-payment of the debt which will allow others to see how the debt arose and why your story of the debt is more believable and convincing than that of the debtor.

Debts this large may and very often do lead to the area of law known as insolvency which involves a company or individual who is unable to pay their debts as and when they fall due and payable. If a company has reached this stage, it is possible that you can issue a creditor’s statutory demand on them and request that they be wound up. If they are an individual you may be able to file bankruptcy proceedings against them and have a bankruptcy trustee appointed to administer their financial affairs. However, as a creditor, you need to be prepared for the fact that an insolvent company or person once made insolvent is very unlikely to pay their debts back as they will often be discharged from paying their debts as a result of their insolvency.

If you would like more information, please click on the link below to obtain the advice of a professional on these matters. Or, if you simply want to issue a final letter of demand you can go ahead and get one from the set we have available here.

Debt Collection Letter Resources