A Client lodged a debt of $46,000. When we contacted the debtor, he was antagonistic saying he would take the matter to court. We served a Statement of Claim and secured a favourable judgment against the debtor. Realizing the judgment, the debtor paid the Client in full, including the Client’s debt collection costs. If you are experiencing the same thing, read our case study to learn how we resolved the issues . . .
Part 1: Problem
The Client lodged with Slater Byrne Recoveries a debt of $46,000. The debt was for the Supply & Installation of Programming services. The Client advised our office that the debtor had three months before our engagement to pay so the Client wanted to proceed ASAP.
Since the debt owed to our client was already three months overdue and the debtor seemed intent on stalling a resolution, our client decided to escalate the issue and initiate legal action following the debtor’s antagonistic SMS messages.
Given the debtor’s SMS messages asserting a strong case and suggesting the matter would go to court, our client decided against sending additional demand notices. Instead, they issued a Notice of Impending Legal Action to underscore the urgency of resolving the issue. When this demand expired and the debtor failed to respond to further attempts to communicate, our client proceeded with legal action.
Part 2: Solution
We served the Statement of Claim to the debtor and made numerous attempts to contact him through phone, email, and SMS. Despite these efforts, the debtor failed to respond within 28 days, choosing instead to lodge numerous complaints and refusing to pay more than $1 due to disputes stemming from a long-standing relationship with our Client. His response included daily abuse directed at our team.
With the case undefended, our Client secured a judgment against the debtor. Only then did the debtor realize the seriousness of the situation as the judgment became public, prompting even more aggressive behaviour. Our Client proceeded with a Statutory Demand, at which point the debtor sought legal advice. His lawyer confirmed he was in a difficult position, leading the debtor to pay the debt before windup proceedings could commence.
Part 3: Outcome
In the end, we successfully secured a payment of $49,163.72 from the debtor, who had previously insisted he would not pay. All of our Client’s costs were covered, and the debtor also paid to have the judgment set aside to avoid having it on his public record. Despite the abusive behaviour we endured, the debtor surprisingly praised our professionalism and effectiveness in handling the matter.
“Many thanks to everyone involved,” was the debtor’s parting email before we finally closed the case.
This case highlights our commitment to securing the full amount for our clients while maintaining fairness towards the debtor. By navigating the legal complexities and managing the debtor’s aggressive tactics, we achieved a favourable outcome for both parties involved.
