Luật học - Chapter 16: Debt recovery

This is the prescribed textbook for your course.Available NOW at your campus bookstore!Debt recoveryChapter 16Learning objectives At the end of this chapter you should understand:the steps that should be taken before deciding to grant credit to an applicantthe steps used to encourage punctual payment of debtsthe steps in the debt collection processthe matters that should be considered before commencing legal proceedingshow a creditor selects the appropriate court in which to institute proceedingsthe process by which a judgment is obtained against a debtorLearning objectives (cont.)how to apply the processes by which judgment is enforced against a debtor, including:examination processwrit of executiongarnishee order instalment order bankruptcy or winding up order.IntroductionGoods and services are often provided to people who fail to pay for them.Those who owe money are called debtors.Those who are owed the money are their creditors.There are strategies that encourage repayment of debts and debt collection processes.The decision to grant credit—creditworthiness checkProof of identity of applicant:NameAddressAssets and liabilitiesEmployment status If a company:Names of directorsAddresses of directorsPaid-up capital of companyCredit referencesConfirm ownership of propertyThe decision to grant credit—credit policyCredit policy should be notified to debtor, e.g.When payment is dueAcceptable methods of paymentInterest charges for late payments (default interest)Incentives to encourage punctual payment of debtsDiscount for early paymentCredit charge for late paymentNotification of overdue accounts:account rendered sentpersonal phone callSteps in the debt collection process Account rendered (For unpaid account)Letter of demand Details of debt Date debt incurred Debt collection Specify date payment to be made agency Specify legal proceedings will result Payment Negotiation, Legal made mediation or proceedings arbitration Court issues summons Affidavit of Service of Particulars of claim: service summons Names—plaintiff and defendant Proof of service Given to Addresses—plaintiff and defendant of summons defendant Details plaintiff’s claimService of summonsDefendant—possible responses Agrees to pay Agrees to pay Through in lump sum in instalments court Dispute claim via Judgment against filing defence defendant (judgment in default) For defendant For plaintiff Judgment Finish Plaintiff — judgment creditor Defendant —judgment debtorEnforcement of the judgment Enforce the judgement Examination summons / oral examination Ability of debtor to pay is examined INSTALMENT EXECUTION BANKRUPTCY ORDER AGAINST GOODS PROCEEDINGS Payment by Seizing goods of debtor and Debt > $5000 instalment selling to satisfy amount owing GARNISHEE ORDER EXECUTION Paid on behalf of debtor by AGAINST LAND employee or bank Sell land owned by (ATTACHMENT OF EARNINGS ORDER) debtor at public auction Unacceptable conduct when collecting debtsNational Consumer Credit Protection Agency Act 2009 (Cwlth)Section 99 prevents debt collector from entering residential property to repossess goods.Australian Consumer LawSection 168 prohibits the use of physical force, undue harassment or coercion.Section 18 prohibits misleading and deceptive conduct by persons engaged in trade and commerce.Section 21 and 22 prohibit unconscionable conduct by persons engaged in trade and commerce.