Debt Recovery
Unpaid debts don’t just affect cash flow. They affect your capacity to grow, hire, and plan.
Every business faces unpaid debts from time to time. The question is what to do about them — and when. Act too early or too aggressively, and you damage relationships that still have commercial value. Act too late, and the debtor’s position deteriorates, assets disappear, and recovery becomes difficult or impossible.
Zorić Legal is a team of debt recovery lawyers in Perth, helping Western Australian businesses and local governments recover outstanding debts efficiently and strategically. From a well-drafted letter of demand through to judgment enforcement, we manage every stage of the recovery process with clarity about what works, what each step costs, and what realistic recovery looks like.
A recovery strategy built around your commercial outcome
Debt recovery is rarely only about the legal process. It’s about making a commercial decision — is this debt worth pursuing, what’s the fastest path to payment, and at what point does further action stop making sense?
We work with you to answer those questions before any action is taken. A typical matter starts with three things:
- An honest assessment of the debtor’s position. Are there assets? Is the debtor solvent? Is there a history of payment disputes? The answer changes the strategy entirely.
- A clear view of recovery options. Letter of demand, negotiated settlement, statutory demand, court proceedings, enforcement action. Each has a different cost, timeframe, and likelihood of success.
- A commercial escalation plan. What we do if the first step doesn’t resolve the matter, and at what point we recommend stopping.
From there, we act decisively on your instructions — and we keep you informed about costs and progress at every stage.
Recovery matters we act on
Our debt recovery practice covers the full range of commercial recovery matters affecting Western Australian businesses:
- Commercial debt recovery — unpaid invoices, breach of contract recovery, and commercial payment disputes.
- Statutory demands and bankruptcy proceedings — for debts owed by companies and individuals respectively.
- Insolvency-related disputes — proving debts, voidable transactions, and creditor claims.
- Judgment enforcement — turning a court judgment into actual recovery through the full range of enforcement tools.
- Security enforcement — enforcing charges, mortgages, and personal guarantees.
- Cross-border and interstate debt matters — recovering debts from debtors outside Western Australia.
- Letters of demand and settlement negotiations — resolving matters commercially before they reach court.
- Local government rates and charges recovery — a dedicated practice area for Western Australian councils.
Local government rates and charges recovery
Unpaid rates are not simply an accounting issue. Over time they affect a council’s ability to fund infrastructure, community services, and essential local programs. The Local Government Act 1995 (WA) provides a clear framework for recovery, but many councils find the enforcement process complex, time-consuming, and difficult to progress internally, particularly when matters escalate.
We assist local governments across Western Australia with the strategic recovery of statutory debts, including:
- Rate arrears recovery strategies and long-term arrears management
- Enforcement options under the Local Government Act 1995 (WA)
- Court enforcement and debt recovery proceedings
- Complex or long-standing arrears matters spanning multiple financial years
- Property sale and enforcement mechanisms under the Act
- Practical advice for internal governance and recovery procedures
Our approach is always practical, commercial, and solutions-driven — helping councils recover outstanding revenue while navigating the legal framework efficiently and with appropriate community sensitivity.
If you work in local government finance, governance, or compliance and you’re dealing with persistent rate arrears issues, we’d welcome a conversation.
Judgment enforcement: turning a court order into actual payment
Many businesses assume that once they obtain a court judgment, payment automatically follows. It doesn’t. A judgment confirms the debt — enforcement is a separate process.
The right enforcement strategy depends entirely on the debtor’s circumstances. Before spending more money on enforcement, it’s critical to understand what the debtor actually has — wages, real property, bank funds, business interests — and choose the option that gives you the best prospect of recovery.
Enforcement options we use include:
- Means inquiry — compelling the debtor to disclose their true financial position under oath. Often the most important first step if the debtor’s position is unclear.
- Property (Seizure and Sale) Order — authorising the Sheriff to seize and sell the debtor’s real or personal property.
- Earnings Appropriation Order — regular deductions from the debtor’s wages or salary.
- Debt Appropriation Order — redirecting money owed to the debtor by a third party (including bank funds).
- Time for Payment or Instalment Orders — structured repayment arrangements where appropriate.
- Bankruptcy or winding-up proceedings — where commercial pressure is the right strategic response.
- Appointment of a Receiver — for complex matters involving income streams or business assets.
The critical first step is almost always the means inquiry. Without a clear picture of what the debtor has, enforcement becomes guesswork — and throwing good money after bad is one of the most common mistakes in debt recovery.
How we work with you
- A fast, commercial first view. After an initial discussion and review of the key documents, you’ll have a clear view of what recovery looks like for this debt — including options, likely costs, timeframes, and realistic prospects.
- Escalation only when it makes sense. Most debts resolve at the letter of demand or statutory demand stage. We don’t escalate to court proceedings unless the commercial calculation supports it.
- Fixed fees for defined work. Letters of demand, statutory demands, and basic enforcement applications are all available on fixed fees, so you can budget the recovery cost against the debt amount.
- Cost-conscious enforcement. Enforcement isn’t free, and every step has a cost-benefit calculation. We’ll tell you when the likely recovery justifies the next step, and when it doesn’t.
- Direct access to a principal lawyer. Your matter is handled by Alena, not delegated down a chain.
About Alena Zorić
Alena is the Principal Lawyer at Zorić Legal. She has over a decade of experience in commercial disputes, including significant recovery actions and enforcement work for businesses, insurers, and local governments across Western Australia and South Australia. She is admitted to the Supreme Court of Western Australia and the High Court of Australia, and has appeared in courts throughout both states.
Alena is also an AMDRAS-accredited mediator and an Adjunct Lecturer at the College of Law Australia.
Frequently Asked Questions
When should I send a letter of demand versus going straight to court?
Almost always start with a letter of demand. A well-drafted letter of demand from a lawyer resolves a significant portion of disputes before any court action — it clarifies the debt, puts the debtor on notice, and demonstrates seriousness. Skipping this step and going straight to court increases costs and reduces the chance of a commercial settlement. The exception is where there’s a specific reason for urgency — for example, imminent insolvency, limitation periods, or asset dissipation risk.
What’s the difference between a statutory demand and a letter of demand?
A letter of demand is a formal request for payment that carries no automatic legal consequence if ignored. A statutory demand is a specific legal instrument under the Corporations Act 2001 — if a company fails to pay a statutory demand within 21 days, it can be presumed insolvent and wound up. Statutory demands are powerful but only available in specific circumstances (the debt must be due and payable, not genuinely disputed, and above a threshold amount). We’ll advise on which is appropriate for your matter.
I have a judgment but haven’t been paid. What now?
A judgment on its own doesn’t recover money — enforcement does. The first question is almost always about the debtor’s position: what do they have, where is it, and what’s the most efficient way to reach it. A means inquiry is often the right starting point if you don’t already know. From there, enforcement options include property seizure, earnings appropriation, debt appropriation order, and insolvency proceedings. We can advise on which is most likely to produce an actual recovery.
What does debt recovery cost?
For straightforward matters — letters of demand, statutory demands, basic enforcement applications — we offer fixed fees so you know the cost before work begins. For contested or complex matters, we bill hourly with upfront estimates and regular cost updates. The first consultation is free.
Is it worth pursuing a small debt?
Sometimes yes, sometimes no. For smaller debts, the Magistrates Court and simple enforcement tools are often cost-effective. For very small debts, the legal cost can exceed the recovery. We’ll give you an honest view of the cost-benefit before committing to any action — including telling you when a debt isn’t worth pursuing.
Can you help recover debts from debtors interstate?
Yes. We handle cross-border recovery matters, including debts owed by interstate debtors and judgments that need to be enforced in other states.
Speak to Our Debt Recovery Lawyers Perth
If you’re holding an unpaid invoice, an unenforceable judgment, or a pattern of late payments that’s affecting your business, the cost of getting early advice is almost always less than the cost of waiting. The first consultation is free and focused on giving you a clear view of your options and what realistic recovery looks like.