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Managing your accounts, especially your trade debtors or accounts receivable is important to ensuring a healthy cash flow. Of course when it comes to 'collecting debts' preventative measures are preferred, however no matter what kinds of practice or procedures you may adopt, there may always been situations when you are required to sue a customer or client for unpaid accounts - this is debt recovery.

Small claims debt recovery has been intentionally simplified by the courts to allow most parties to represent themselves without needing to retain a lawyer or obtain legal representation. In this way, legal expenses or economic barriers to obtaining 'justice' are often avoided and parties can access the legal system on a level playing field. The process adopted by most small claims jurisdictions is also informal, compared to the more formal practice and procedures of other court and jurisdictions. Often the strict rules of evidence do not apply and therefore various legal technicalities are dispensed with in favour of a more practical approach. Sometimes the officers who preside over these courts or tribunals also adopt a more inquisitorial approach as opposed to the generally adversarial model used by other forums.

At the end of the day, if you have outstanding debts and have been unsuccessful in recovering them in any other way, it may pay to investigate what legal rights you may have and the options available to you through small claims debt recovery. In New South Wales, most Local Courts will offer the services of a chamber registrar or chamber magistrate, who will provide free legal advice and may even assist you in preparing legal documents - however, they will not appear on your behalf or represent you in the court or tribunal.

If you decide to represent yourself, one of the most important things to remember is to be prepared. If you are not prepared or if you do not take the proceedings seriously, you may incur additional cost or expenses, or waste time or an opportunity. A little effort and common sense will go a long way in being able to establish your case and prevail when the time comes.

Even though some courts and tribunals do not allow lawyers to be involved at the actual appearances, you can still obtain legal advice before and during your legal action. In fact, it is recommended to ensure that you are doing the right thing or at least preparing and conducting your case in the best possible way.

Debt recovery is generally a simple cause of action requiring basic proofs to establish the right to the claim and a judgment - and there should be no reason why such an action should fail if the original claim is legitimate. Obtain the right advice and you should be confident in knowing that you are fully armed to deal with your case and hopefully, be successful in your debt recovery action.

The legal action to obtain a judgment - or confirm your legal entitlement to the money - is only part of the challenge. Depending on the nature of the debtor, the other hurdle that you may have to face is actually recovering the money even after you successfully obtain a judgment through the court or tribunal. Enforcement action through the court system can often be frustrating and expensive - and the subject of another article for another day.

About Ern Phang

Ern Phang is the solicitor director of Parramatta law firm, Phang Legal. Ern practises in the areas of property and commercial transactions, corporate compliance, and is an experienced company director and company secretary. Ern has extensive experience in civil litigation (ie, commercial and insurance claims, debt recovery and general disputes) and various forms of dispute resolution. Ern is also a notary public.

Ern has and continues to act for a variety of business (domestic and international), government departments and the military, and not-for-profit community/religious organisations - as well as individuals and their families. Ern is passionate about the local community, and enjoys being in local business involved with and supporting local organisations and local people.

Ern's dedication to his clients and community service continues to drive Phang Legal from strength to strength.

About Phang Legal

Phang Legal is a progressive and dynamic law firm offering a different attitude to the practice of law and a different approach to the delivery of legal services. The firm continues to honour the traditions and standards of the legal profession, while remaining current and relevant to ever changing client requirements and expectations. Phang Legal provides cost effective and practical solutions across a wide range of practice areas including conveyancing and property law, corporate and commercial law, litigation and dispute resolution, wills and estates (elders law), legal aid and criminal law, and notary public services.

PHANG LEGAL
6/83 George Street, Parramatta NSW 2150 AU
PO Box 1375, Parramatta NSW 2124 AU
Telephone: +61 2 9687 8885
Facsimile: +61 2 9687 8883
Web: www.phanglegal.com.au