Legal CostsWe will make sure you know about how much our work is going to cost before we get started.

Debt Recovery Litigation

E C Legal sees debt recovery litigation as being a claim where there is unlikely to be a dispute about whether or not the amount is owed. In these situations, the aim is to use the litigation process to force the debtors to make payments.

E C Legal works closely with your eCollect account manager in handling debt recovery litigation. A legal notice or demand will generally have been sent via the eCollect software. The idea is to get the legal process underway with the least possible time and effort being spent.

Who Does What

You need to:

The eCollect Account Manager will:

The E C Legal lawyer will:

Legal Costs

E C Legal will usually charge in accordance with the court scale applicable to your matter plus GST.

To provide certainty for you, E C Legal will give you a fixed price for the above work. The fixed price will depend on the amount of the claim and which court is being used e.g. Magistrates Court of Victoria, Local Court of New South Wales etc. It is usually around $1,000 to $1,200 for a claim of $20,000.

As a general rule, an amount for legal costs (about the same as E C Legal’s fixed price) are added onto the debt when an order is obtained from the court and is recoverable from the debtor.

There are usually no costs awarded for claims under $500.

Note that these costs are for the initial round of work as set out above only i.e. up to the point of obtaining an order or notice of defence.

Estimated Time Frame

Here is the sort of time frame that you could expect:

Enforcement

In the event that a judgment is obtained and the defendant does not respond (or responds with “I am not paying” as some have done), then E C Legal will need to take action to enforce the order. This will involve additional cost.

E C Legal will not take enforcement action without your approval.

Once the order is obtained against the defendant, all the enforcement options should be carefully considered against the defendant’s circumstances before decided which method to proceed.