The success of any business is linked to its debtors management. The team at Neumann & Turnour Lawyers knows the steps to take at contract formation, in the delivery process and at collection time to see that debtor management reaps profitable returns.
The Civil Courts structure in Queensland provides different Courts to deal with different matters depending on the amount involved in the debt recovery.
A higher level of bankruptcies and liquidations has seen an increase in recent years in the number of companies which have had difficulties recovering debts. The Federal Court has increased the fees for lodgement of a bankruptcy notice and a creditor petition to $800.00 for an individual or $1,600.00 for a corporation.
Generally the most prudent advice given by Neumann & Turnour is for a trading company to prevent a bad debt situation arising rather than attempting to contain it once a bad debt exists. A number of mechanisms may be used to protect against bad debts.
Enquiries can be made into the asset position of any company seeking a credit arrangement. A mortgage can be taken or a credit provider may enter a caveat over any property of someone to whom credit has been supplied.
Generally where proceedings are required to be commenced, if the matter is a straight forward proceeding where there is no argument as to the merchantability of goods sold and delivered, an action can be commenced and concluded within a short period of three (3) months.
Naturally whenever trading with a privately owned company, personal guarantees from the directors should be sought before credit arrangement facilities are put in place.
Neumann and Turnour Lawyers can assist in the preparation of credit documentation to maximise available legal options.