You did the work. You delivered the goods. You sent the invoice. And you’re still not getting paid. If a business owes you money and won’t pay, you don’t have to accept it. The law gives you powerful tools to recover what you’re owed.
The Reality of Business Debt
Late payments and bad debts cost Australian businesses billions every year. If you’re chasing an unpaid invoice, you’re not alone — but waiting and hoping doesn’t work. The longer you wait, the harder recovery becomes.
At Boss Lawyers, we recover debts for Queensland businesses every day — from $10,000 invoices to multi-million dollar disputes. Here’s how the process works.
Our Proven Debt Recovery Process
Step 1: Letter of Demand
A formal letter of demand from a lawyer immediately changes the dynamic. It tells the debtor you’re serious, and it sets a clear deadline — typically 14 days — after which legal proceedings will commence.
A well-drafted letter of demand resolves 30-40% of debts without further action. Sometimes all it takes is a lawyer’s letterhead to get the cheque in the mail.
Step 2: Statutory Demand (For Company Debtors)
If the debtor is a company and owes at least $4,000, a statutory demand is one of the most powerful tools available. Served under section 459E of the Corporations Act, it gives the company 21 days to pay or face a presumption of insolvency.
Why is this so effective? Because if the company doesn’t pay within 21 days, you can apply to have it wound up. Most companies — even those that have been ignoring your invoices for months — will find the money to pay when their very existence is on the line.
Step 3: Court Proceedings
If the debtor still won’t pay, we commence proceedings in the appropriate court:
- Up to $25,000: QCAT (Queensland Civil and Administrative Tribunal)
- $25,001-$150,000: Magistrates Court
- $150,001-$750,000: District Court
- Over $750,000: Supreme Court
If the debt is undisputed and the debtor doesn’t file a defence, we can apply for default judgment — often within weeks.
Step 4: Enforcement
Once we have a judgment, we enforce it. Options include:
- Garnishee orders — redirecting money from the debtor’s bank account or debtors
- Seizure and sale — a bailiff seizes and sells the debtor’s assets
- Charging orders — placing a charge over the debtor’s property
- Winding up — for company debtors, a judgment debt creates a path to liquidation
- Bankruptcy — for individual debtors owing $10,000+
How Much Does It Cost?
We understand that cost is a concern — you’re already out of pocket. That’s why we offer:
- Upfront cost estimates before we start any work
- Fixed fees for letters of demand and statutory demands where possible
- Proportionate advice — we won’t recommend spending $50,000 to recover a $20,000 debt
- Costs recovery — in most cases, the debtor is ordered to pay a portion of your legal costs if you’re successful
What You Need to Get Started
To assess your debt recovery matter, we’ll need:
- The contract, purchase order, or agreement (if any)
- The unpaid invoices with dates and amounts
- Any correspondence with the debtor about the debt
- The debtor’s details — full legal name, ABN/ACN, address
Why Choose Boss Lawyers?
- 17+ years of experience in debt recovery and commercial litigation
- 3,000+ clients served
- Listed in Doyle’s Guide for litigation
- We recover debts from $10K to $10M+
- Principal-led service — Mark Harley handles every matter personally
- Results-focused — we use the most effective recovery tool for your situation
- Transparent pricing — you’ll know the cost before we start
Stop Waiting. Start Recovering. Call 1300 267 711
Every day you wait is a day the debtor has to move assets, spend money, or become judgment-proof. Act now.
Call 1300 267 711 for a straightforward assessment of your debt recovery options.
Boss Lawyers Pty Ltd | Level 27, Santos Place, 32 Turbot Street, Brisbane QLD 4000
Enforcing Your Judgment: Beyond Getting the Court Order
Obtaining a court judgment is a significant step — but it is not the end of the process. A judgment is only as valuable as your ability to enforce it. If the debtor does not pay voluntarily, Queensland and federal law provide creditors with a range of powerful enforcement mechanisms.
Garnishee Orders
A garnishee order requires a third party — typically the debtor’s bank or an employer — to pay money owed to the debtor directly to you. A bank garnishee can recover funds from the debtor’s accounts quickly and without the debtor’s cooperation. An earnings garnishee can redirect a portion of an individual debtor’s wages on an ongoing basis until the judgment is satisfied. These are among the most effective enforcement tools for judgment creditors in Queensland.
Examination of Judgment Debtor
If you do not know where the debtor’s assets are, you can apply for a court examination — formally, an Examination of Judgment Debtor under the Uniform Civil Procedure Rules 1999 (Qld). The debtor is summoned to court and required to answer questions under oath about their assets, income, bank accounts, and financial position. This process is particularly valuable where you suspect the debtor has assets but is evading payment. False answers under examination can amount to contempt of court.
Charging Orders
A charging order places a charge over real property (land) or financial instruments (shares) owned by the debtor. It does not immediately transfer the asset, but it creates a security interest over it and can ultimately lead to a forced sale if the judgment debt is not satisfied. For debtors who own Queensland property but are slow to pay, a charging order is a strategic tool that prevents the debtor from dealing with the property without first satisfying your judgment.
When the Debtor Company Is Insolvent: Your Rights in Liquidation
Sometimes, a debtor company cannot pay because it is genuinely insolvent. When a company enters liquidation — whether by court order or voluntarily — creditors do not lose their rights. The process changes, but the entitlement to participate in the recovery of the company’s assets remains.
As an unsecured creditor, you lodge a Proof of Debt with the liquidator. The liquidator adjudicates all proofs of debt and distributes the company’s assets to creditors in the priority order set out in section 556 of the Corporations Act 2001 (Cth). Priority creditors (including employees for wages and entitlements) are paid first. Unsecured creditors — which includes most trade creditors — share in whatever remains after priority creditors are paid. In many liquidations, the return to unsecured creditors is modest.
However, creditors are not necessarily limited to their proof of debt. Liquidators investigate director conduct and can pursue insolvent trading claims against directors personally, unfair preference claims to claw back payments made to other creditors before liquidation, and voidable transaction claims against related parties. A creditor with information about the company’s affairs can and should communicate that information to the liquidator — it can increase the pool available for distribution.
PPSA and Secured Creditor Priority: How Registration Changes Your Position
Under the Personal Property Securities Act 2009 (Cth) (PPSA), businesses that supply goods on credit, provide equipment under hire or lease arrangements, or extend finance can register a security interest on the Personal Property Securities Register (PPSR). A properly registered PPSA security interest gives you priority over unsecured creditors in the event of the debtor’s insolvency — fundamentally changing your recovery position.
Two critical points for Queensland businesses:
- Registration must occur before insolvency. A security interest registered after the debtor enters external administration may be void in the subsequent liquidation. PPSA registration should be completed at the commencement of the commercial relationship — when goods are first supplied or credit is first extended — not when a dispute arises.
- The difference between secured and unsecured can be dramatic. An unsecured creditor in a liquidation may recover cents in the dollar — or nothing. A perfected secured creditor can recover the secured asset or its proceeds ahead of all unsecured claims, potentially achieving full recovery even in a company that is deeply insolvent.
If your business regularly extends credit or supplies goods, a PPSA audit and registration process is one of the most cost-effective risk management steps you can take. Getting it right before an insolvency event is far preferable to relying on enforcement tools after the fact.
If you are owed money by a business or individual and need to take action, our debt recovery lawyers Brisbane can advise on the most effective strategy for your situation — whether that is a letter of demand, statutory demand, court proceedings, or post-judgment enforcement. Contact Boss Lawyers on 1300 267 711.
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This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
