Debt Collection Documents

Time Limits

Acknowledgement Letter – Use this letter where the debtor has admitted the debt verbally – you need it in writing.

Policies And Procedures

Terms of Trade – This sample document sets out the specific arrangement between you and your customer.  By having certain clauses (like personal guarantees and penalty interest for late payment) you will preempt problems down the track.

Letters Of Demand

Letter 1 – Nice Reminder – This is the first letter you send to the debtor notifying them there is a problem. With this letter you attempt to maintain relations whilst letting the debtor know you expect payment and soon.

Letter 2 – Letter of Demand – A stronger letter to the debtor but showing them you are prepared to accommodate them by accepting payments in installments. This letter, as with all letters of demand, can be used as evidence later down the track to the Court that you attempted to settle the matter prior to issuing proceedings.

Letter 3 – Letter of Demand – Tightening the Screws – This is the last letter you will send before issuing court proceedings.

Statement of Claim

Statement of Claim with guide in red – this is the document filed with the Court setting out what your case is about and what relief, such as the amount you are owed and/or interest, you seek.

Affidavit of Service – This form is used as evidence of how and when you served a document on the debtor.  It must attach/annex the document you served and be sworn before a solicitor or Jutice of the Peace.

What happens after issue of Statement of Claim

Notice for Particulars – this letter is sent by the debtor/defendant to you seeking further information about the case against them.

Garnishee

Garnishee Order Application with a guide in blue – known by the Court as a “Notice of Motion – Garnishee Order”. This document is filed with the Court requesting that the Court order another party to hand over the debtors money to you.

Garnishee Order for Wages or Salary – Together with (1) the Order from the Court (showing that you have won your case against the debtor) and (2) the Notice of Motion – Garnishee Order, you must also file this document to garnish the debtors salary.

Writ of Execution

Form 65 – Notice of Motion Writ for the Levy of Property with guide – basically your application to the Court for the issue of a writ (Form 66) to the sheriff so that he can march in and seize goods.

Form 66 – Writ for Levy of Property with guide. You complete this as much as possible leaving the remainder for the Court to complete when your application is processed. This is usually done by a Registrar and you do not need to appear in Court – just simply file the documents.

Examination of Debtor

Examination Notice Individual – The document you send to the debtor defendant (now called the judgment debtor) asking questions about their finances. It is not filed with the Court.

Examination Notice Company – The document you send to a company against which you have obtained judgment asking it questions about finances. It is not filed with the Court.

Examination Questions – This is a guide to the type of questions you should ask of your judgment debtor in Court to enable you to fully understand their finances.

Notice of Motion – Examination Order (with guide) – The form you file with the Court to bring your application to have the debtor hauled into Court to be examined.

Examination Order (with guide) – This is the document that issues from the Court ordering the judgment debtor to come before it and answer questions about their finances. As the guide indicates, you will only complete as much as you know and the remainder (such as time and date of the examination) will be completed by the Court.

Bankruptcy Notice – Application Form.  This is a highly technical form that begin the bankruptcy proceedings.

Statutory Demands

Statutory Demand – Form 509H.  Use this form carefully as it begins the process of winding up the debtor and can have serious ramifications if used incorrectly.

Affidavit of Service - This form is uses as evidence of how and when you served a document on the debtor.  It must attach/annex the document you served and be sworn before a solicitor or Jutice of the Peace.