Letter of Demand

Once you submit your debt, Woods & Day will issue a targeted legal letter demanding payment of the debt within seven (7) days. We charge a fixed rate of $49.50 (including GST) per letter of demand issued.

Legal Proceedings

In the event that the debt is not recovered by the letter of demand we will seek your instructions to commence legal proceedings in the Local Court of NSW to recover the debt by way of Statement of Claim. Once the Statement of Claim has been served on the debtor they will have 28 days to either pay the debt or file a defence, otherwise we can file an application to enter default judgment against the debtor.

All of the legal costs associated with the Statement of Claim will be in accordance with the Court Scale at the time. If default judgment is entered against the debtor, these costs will be recoverable from the debtor as part of the debt. The current Court Scale for the drafting, lodgement and service of the Statement of Claim is:

Amount of Debt

Service Fee (inc GST)1

Filing Fee2

Professional Fees (inc GST)3

$1 to $1,000

$67

$202

$300

$1,001 to $5,000

$67

$202

$450

$5,001 to $10,000

$67

$202

$600

$10,001 to $20,000

$67

$498

$750

$20,001 to $100,000

$67

$498

$POA

1 Service fee is only applicable where the debtor is an individual. The quoted service fees only cover one service attempt on one debtor. Additional service attempts will incur an additional fee of approximately $67 per attempt.

2 The quoted filing fees are on the basis that the creditor is a company. If the creditor is an individual then the filing fee for a Statement of Claim will be half of the filing fee quoted.

3 Statements of Claim where the debtor is a company will also incur a company search fee of $14.70 (plus GST). All Statements of Claim will also incur printing costs of $10 (plus GST).

Default Judgement

If the debtor does not pay the debt or file a defence within 28 days of service of the Statement of Claim we can file an application to enter default judgment against the debtor. Entry of default judgment will affect the debtor’s credit rating and allow you take action to enforce the debt.

All legal costs of obtaining default judgment will be in accordance with the Court Scale at the time and are recoverable from the debtor as part of the judgment debt. The current Court Scale for entry of default judgment is:

Amount of Debt

Professional Costs (inc GST)

$0 to $1,000

$150

$1,001 to $5,000

$200

$5,001 to $20,000

$275

$20,001 to $100,000

$350

Enforcement

Once judgment has been entered against the debtor the following methods can be used to recover the debt:

1.1 Writ for the Levy of Property:

The sheriff will attempt to seize and sell the debtor’s property to satisfy the judgment debt. Our costs for drafting and lodging the writ are $320 (including GST) plus a Local Court filing fee of $86 (which covers one attempt at execution of the writ). A further sheriff’s fee of $86 will be charged for each additional execution attempt. A sheriff’s fee of $50 is also payable upon seizure of the debtor’s property. These costs are recoverable as part of the judgment debt.

1.2 Garnishee Order:

A garnishee order is an order that the debtor’s bank or employer pay money held in their account or wages owed to them directly to you. Our costs of preparing, lodging and serving the garnishee order are $320 (including GST).

1.3 Examination Order:

An examination order is an order that the debtor attend court to be examined on their ability to pay the debt (including details of any bank accounts and property owned by them). If the debtor fails to attend the examination hearing an arrest warrant can be issued against them requiring them to attend court to be examined.

Our costs are as follows:

(a) Examination Order: $450 (including GST) plus a filing fee of $176 and a service fee of approximately $67;

(b) Attendance at Examination Hearing: $350 (including GST);

(c) Arrest Warrant: $250, plus filing fee of $86 (including GST).

1.4 Winding Up proceedings and Bankruptcy proceedings

Woods & Day is capable of acting in winding up proceedings (for debts owed by companies that are over $2,000) and bankruptcy proceedings (for debts owed by individuals that are over $5,000). Details of the process and costs of these can be provided upon request.

Defended Matters

If the debtor files a defence to the Statement of Claim we will need to discuss the matter further with you to determine the necessary response and the likely costs. In defended proceedings, our costs will be charged at our hourly rate ($320 to $400 (plus GST) per hour).

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