Sometimes, getting your payment after you’ve done your part for a construction project can be such a hassle. Some homeowners can definitely drive you nuts. Ideally, you’d want to get your money in a snap, but since this is not always the case, you better know your legal options now.
Contracts Specialist can help you stand up for yourself and claim what is rightfully yours! Get the right legal advice now.
Debt recovery, or debt collection, is a process of collecting the payment the project owner (debtor) owes to the contractor (creditor).
When disputes arise in construction work, contractors experience a set back. This can result in slow payment, underpayment, and even non-payment.
Here’s the step-by-step guide to recovering money owed to you.
Quick Tip: Contracts Specialist can help you with your legal situation. We have been helping our clients with Debt Recovery for more than 10 years.
Note: The size of the debt will determine which court will hear the claim.
1. When the debtor DOES NOT FILE a defence, you just have to wait 28 days from service of the Statement of Claim, then complete the form.
Note: A default judgment is a judgment made against a debtor without the matter going to a court hearing.
Note: The situation will proceed to a hearing if the matter is unable to be settled at the Pre Trial Preview.
Here are the options for Enforcement of legal action when the creditor is successful:
1. Seeking an Examination Summons – this includes examining the financial position of the debtor.
2. Garnishee Order – this order directs that funds which would have been paid to a debtor are paid to the creditor instead.
3. Writ of Execution – this is a court order where the Sheriff seizes and sells a debtor’s personal assets.
4. Writ Against Land – a court order where the Sheriff seizes and sells the real property owned by a debtor. This applies only to debts greater than $10,000.
5. Seeking Bankruptcy (for individuals) – if the debt exceeds $5,000 or liquidation (for companies) if the debt exceeds $2,000.
6. Insolvency (for companies)– When a company is unable to pay the debts.
Your hard work will pay off. The purpose of the Security of Payment Act is to ensure that tradespeople in the construction industry will get the right payment for the goods and services they have delivered. These are your legal rights:
Get expert legal advice from our principal lawyer, John Dela Cruz. With his extensive knowledge and significant experience dealing with construction law matters, you can be confident that you are in the good hands.
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Consult with Contract Specialist for issues regarding debt recovery, Security of Payment, construction contracts, and building disputes. We can help you move forward.
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Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.