Are you owed money that you would like to collect?
If so, you can take legal action to recover it with Molloy & Schrader. In certain situations, you can also recover your legal costs related to recovery proceedings.
Molloy & Schrader can assist you with:
- Preparing a Statement of Claim – used to claim money owed;
- Entering Judgment against the debtor (when no action is taken within 28 days).
Once Judgment is entered, a number of procedures are available to enforce it. At Molloy & Schrader, our debt recovery lawyers can assist you with:
- Writs (seizure of goods to sell in order to repay the debt),
- Examination Summons (requiring the debtor to attend Court to explain how they will satisfy the Judgment), and
- Garnishee Orders (whereby the Court can order a third party to pay money to a creditor instead of a debtor).
If an individual is declared bankrupt by the Courts, a Trustee is appointed to take control of the insolvent person’s estate in order to turn the assets into cash to distribute among unsecured creditors (those who do not hold security for payment of the debt). Bankruptcy proceedings are handled in either the Federal Court or the Federal Magistrates Court.
In the case of a company, the Court has the power to ‘wind it up’ and appoint a Liquidator, whose responsibility is to turn the assets into cash and distribute it in the order set out in the Corporations Act. The creditor and the liquidator firstly recover their costs, followed by certain entitlements to employees. The balance is distributed among unsecured creditors. Winding up proceedings are handled in either the Supreme Court or the Federal Court. Molloy & Schrader can assist you by filing an Originating Process. If the Court is satisfied that the company is trading while insolvent, it can then appoint a liquidator.