Overdue Client Payments - Assistance Please

[Solo Lawyer]

Dear Easy Workplace Safety

I think you have been given a lot of good advice on what to do.

However if you decide to take some legal action there are a few things you should know.

If you send a letter of demand and then take court action, even if you win the case, enforcing your judgment can be very hard. Often it is not worth the effort unless the amount owed is substantial.

I am not too sure whether the client who has not paid their bill is incorporated. However if they are not incorporated and operate as a sole trader or partnership, the best way to get your money is to commence bankruptcy proceedings against them. It will certainly get their attention because personal bankruptcy will impact on your client's ability to get loans and credit in the future.

Currently, to commence bankruptcy proceedings you need to be owed $2000 by an unincorporated entity. However that limit is likely to increase to $10,000 later in the year, if some proposed legislation goes through.

I hope that helps.

Michael Terceiro
Solo Lawyer
www.terceiro.com.au

[King]

Originally Posted by Solo Lawyer

Dear Easy Workplace Safety

I think you have been given a lot of good advice on what to do.

However if you decide to take some legal action there are a few things you should know.

If you send a letter of demand and then take court action, even if you win the case, enforcing your judgment can be very hard. Often it is not worth the effort unless the amount owed is substantial.

I am not too sure whether the client who has not paid their bill is incorporated. However if they are not incorporated and operate as a sole trader or partnership, the best way to get your money is to commence bankruptcy proceedings against them. It will certainly get their attention because personal bankruptcy will impact on your client's ability to get loans and credit in the future.

Currently, to commence bankruptcy proceedings you need to be owed $2000 by an unincorporated entity. However that limit is likely to increase to $10,000 later in the year, if some proposed legislation goes through.

I hope that helps.

Michael Terceiro
Solo Lawyer
www.terceiro.com.au

Excellent response .