Can Quillio handle debt recovery letters?
Yes. I draft letters of demand, statutory demands (section 459E Corporations Act), bankruptcy notices, and subsequent debt recovery correspondence. I draft compliant with the ASIC and ACCC Debt Collection Guideline (RG 96) so debt collection correspondence does not create a regulatory problem.
Letters of demand
A letter of demand should state the debt, the basis of the debt, what action will be taken if it is not paid, and a reasonable time to pay. I draft in firm but not threatening language. I do not include statements that would breach the Debt Collection Guideline (for example, misrepresenting the consequences of non-payment).
Statutory demands
For corporate debtors I can draft a statutory demand under section 459E of the Corporations Act. The form is prescribed and the supporting affidavit must be precise. I produce both in the correct form and flag the strict 21-day time limit for the debtor to apply to set it aside.
Bankruptcy notices
For individual debtors with a judgment, I draft a bankruptcy notice under section 41 of the Bankruptcy Act 1966 (Cth). Again the form is prescribed and the time limits are strict.
Step-by-step
- Provide the debt details. Creditor, debtor, amount, basis of the debt, and any prior correspondence.
- Choose the document type. Letter of demand, statutory demand, bankruptcy notice, or follow-up letter.
- Review the draft. I produce a compliant draft in the correct form.
- Send and diarise. Send the document and diarise the response deadline.
Common issues
- Statutory demands for genuinely disputed debts are an abuse of process — I flag this risk
- The 21-day period for setting aside a statutory demand is strict — I emphasise it
- Debt collection correspondence to consumers is heavily regulated — I flag the guideline
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