The Debt Recover Plan - Part 1: Your first point of call
January 5, 2026
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Is your business losing money because clients don’t pay on time or at all? Is your debt recovery process failing to recover the money owed to you? If so, Bailiwick Legal can help.
With the new financial year having just commenced and the end of the calendar year right about the corner, this time of the year is a common time for debt recovery action to be taken. However, businesses should be mindful as to the approach taken to recover due and owing monies and the quality of debt recovery assistance sought.
Who are you going to call?
When monies become due, a business’s first point of call is usually to a debt collection agency. The agency may make a few phone calls and send a few emails/letters, but if the debtor still does not pay, the agency will often then refer the business to a lawyer to commence legal proceedings.
So why not engage a lawyer from the start?
There are many advantages to engaging a lawyer from the start to recover the debt:
- The quicker you pursue your debtors, the more likely you are to collect the full amount of the debt;
- There is a limitation period for the collection of debts, after which the debt becomes statute barred, so time is somewhat of the essence;
- Debt collection agencies usually have no ability to commence legal proceedings on your behalf, so they are simply a ‘stepping stone’ in the debt recovery process; and
- You will more often than not have to pay a percentage of the debt to the debt collection agency as a commission for their services, which could end up being more expensive than a lawyer’s legal costs, depending on the circumstances.
At Bailiwick Legal, we have a wealth of experience in debt recovery actions. We can assist you from start to finish and can tailor the process to your specific situation.
First things first – issuing a Letter of Demand
Our first step when recovering unpaid monies is to issue a formal Letter of Demand to the debtor. This can be a relatively inexpensive and effective way of recovering a debt.
The Letter of Demand will be a last written demand for payment of the debt to be made within a specified time period. It puts the debtor on notice that if they fail to comply with the terms of the Letter of Demand, they risk further action being taken against them, including the commencement of legal proceedings.
A Letter of Demand can be effective because it:
- Is a formal written document;
- Is coming from a lawyer;
- Requires strict compliance with the terms therein within a specified time period;
- Notifies the debtor that if legal proceedings are commenced, such proceedings will be listed on the debtor’s credit report which may effect the debtor’s ability to obtain finance; and
- Gives the debtor a final opportunity to pay the debt before further interest and legal costs are incurred, for which the debtor may be liable.
If the Letter of Demand is not complied with, there are a variety of options available to the business to recover the debt.
So, if you find yourself in one of the below situations, get in contact with us to find out how our services can be of benefit to you:
- You have monies that are due and payable to you;
- You have a debt that remains outstanding despite numerous follow ups with the debtor (including from a debt collection agency); or
- Your debt collection agency is advising you that the next step is to commence legal proceedings/seek assistance from a lawyer.
If you would like further information in relation to how the above matters may affect your business, please contact us on (08) 9321 5451 or by email at danielle@bailiwicklegal.com.au.
For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
Bailiwick Legal Advises on Landmark Acquisition of Rawlinna Station by Consolidated Pastoral Company
Bailiwick Legal is proud to have acted for Consolidated Pastoral Company (CPC) in its successful acquisition of Rawlinna Station , Australia’s largest sheep station, located on the remote Nullarbor Plain in Western Australia. Spanning over 1 million hectares and running approximately 30,000 sheep , Rawlinna is an iconic pastoral asset with a rich legacy, having been held by the MacLachlan family’s Jumbuck Pastoral Company since its establishment in 1962. The sale marks the first change of ownership in over six decades and was finalised following formal approval from the Western Australian Government for the transfer of the pastoral leases. This transaction involved navigating: The transfer of three separate pastoral leases Coordination across multiple vendor entities Consideration of livestock and operating assets Fulfilment of regulatory and compliance requirements, including WA lease approval processes Bailiwick Legal is a boutique agricultural and regional law firm , proudly based in Perth and Bridgetown, Western Australia. Our role in this acquisition demonstrates that deep sector knowledge, local insight, and personalised legal support are crucial for agribusiness clients managing complex, high-value transactions. Our team, led by our regionally-based solicitor, Matilda Lloyd, provided end-to-end legal and strategic support, including: Due diligence on land tenure and operating assets Contract negotiation and preparation Advice on regulatory approvals and compliance Strategic coordination with CPC’s internal and external stakeholders to ensure a smooth and timely settlement We are honoured to have supported CPC in this milestone acquisition and look forward to watching Rawlinna’s next chapter unfolds. At Bailiwick Legal, we believe that regional expertise, deep industry knowledge, and relationship-based service remain essential to agribusiness success, no matter the scale. Congratulations to all parties involved, including the MacLachlan family, whose stewardship of Rawlinna leaves a lasting legacy in Australian agriculture. – The Bailiwick Legal Team Working alongside agribusinesses to grow, transition, and thrive . For assistance with all of your agribusiness needs, contact Bailiwick Legal on 08 9321 5451 or email office@bailiwicklegal.com.au By Matilda Lloyd (Associate) For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
Our June 2024 newsletter is now available. Have a read to find out what we have been up to in the first half of the year!
The International Sustainability and Carbon Certification (ISCC) System has come to the attention of many Western Australian farmers recently, as the scheme has changed one of its policies regarding aerial spraying. What is the ISCC? The ISCC is one of the world’s largest voluntary sustainability certification schemes enabling participants to demonstrate they are producing materials in a sustainable way that meets or exceeds community expectations. In Australia it is widely used in the canola industry, enabling Australian canola growers to access the European biofuel market. CBH Marketing and Trading holds certification for the ISCC EU and ISCC PLUS programs, that cover canola, barley, oats, wheat and lupin, allowing WA growers to participate in both programs. Participating in the ISCC program can result in a premium on grain, however participants are subject to more stringent measures to satisfy sustainability accreditation requirements. Recent decision on aerial spraying ISCC Principle 2.6.2 prevents aerial spraying from taking place within 500 metres of a body of water. CBH has successfully lobbied for an exemption to this Principle, for farm dams and salt lakes of low ecological value. As part of its lobbying, CBH provided expert reports to the ISCC on the hydrology and ecology of WA farm systems. For farmers who are signed up to the ISCC program, this removes an obstacle during the season for weed management. The Principle does still require a 500 metre buffer for other bodies of water, including freshwater lakes, rivers, ponds or creeks. However, for those who farm yabbies and marron, this change may not be welcome. Marron and yabby farmers have noticed impacts on their populations where aerial spraying has taken place close to their properties, and aerial spraying can unintentionally damage natural vegetation, including young and old growth trees. For growers, it’s always prudent to follow best practice guidelines for aerial spraying to avoid spray drift – including monitoring weather conditions and the effect of water added to the chemical. For some farmers, this decision may prompt an examination of whether signing up to the ISCC program might be best for their business. In this circumstance, it is important to weigh up the potential benefits of the program compared to the sustainability accreditation requirements. For others, this decision is a timely reminder to stay up to date with best practice guidelines when it comes to spraying, particularly during the seeding season. For assistance with all of your agribusiness needs, contact Bailiwick Legal on 08 9321 5451 or email office@bailiwicklegal.com.au By Ciara Nalty (Solicitor) For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
