The process of recovery of debt in New South Wales is a lot similar to the recovery procedures followed by various other Australian states. If your business is in need of recovering debt from any party, then it is important to get a clear understanding of the process in your state. 

How does the debt recovery process gets executed?

This process is executed when the debtor fails to make the payment to the creditor on mutually agreed time. The creditor then makes attempt to recollect the debt by communicating it with the debtor via emails, phone calls, etc. It is done to learn the reason why the individual or company has not paid the amount on time.

A formal letter or an email is sent by the creditor to the debtor to threaten him to take any legal measure for not paying the debt within specified time duration. This time duration can be seven, fourteen, twenty-one or twenty-one days of time.

The creditor takes the assistance of a specialized debt recovery specialist law firm to send a ‘letter of demand’ to begin the legal proceedings against the debtor.  Now the process of debt-enforcement process starts. New South Wales is located on the east coast in Australia and is quite popular for its coastal areas.

What is a Debt Enforcement Process?

The debt enforcement process performed by the debt collection procedure in NSWis basically a legal procedure that makes attempt for debt recovery. If the debtor is unable to pay the debt at the time of the debt recovery process it can cause a debtor to get bankrupt or liquidate a debtor company.

How is the Debt Enforcement Process executed in NSW?

The process of debt enforcement implements a different course based on the debt amount, the type of debt (business-related or personal) or whether the debtor plans to dispute the debt.

The Letter of Demand

This document “letter of demand” is sent by the creditor to the debtor to get notified about certain things. One of them is that the creditor has deteriorated the situation that caused the creditor to take the legal action. Legal proceedings will be commenced when the debt isn’t paid in complete amount; and even after giving them a further extension of time limit by 7, 14 or 21 days.

The Statement of Claim

The SoC indicates the beginning of the legal procedure of debt enforcement. The charges of legal proceeding are dependent on various factors related to the debt i.e., size, available proof, etc.). It is not possible to precisely estimate the price until the creditor does not instruct the debt collection attorney to take legal action.

Once the “letter of demand” is sent to the debtor, a copy of the letter is received by the creditor. This letter states client services agreement that includes complete information pertaining to the costs incurred in each and every step taken in the execution of this legal procedure.


If you want to perform a debt collection process, then you must know about the laws and regulations in your city. Hope this article has provided you the detailed description about of the debt collection process in NSW.

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