Debt Collections
Getting paid, without spending more than you recover.
Most unpaid invoices are not disputes — they are people who have worked out that nothing happens if they do not pay. A properly issued demand from an attorney changes that calculation for a large share of debtors, and it costs a fraction of litigation. Where it does not work, we escalate.
Handled by Peter & Mandy Jay · 62 years in practice
The situation
The pattern every business recognises
- The invoice is months old, the excuses have become routine, and chasing it is costing you more than the admin is worth.
- You have a signed agreement and it has made no difference at all.
- You are worried the debt is getting old enough to become unenforceable.
- You have judgment already, and it has not produced a cent.
What the law says
What the law actually says
- Most debts prescribe three years after they become due. Once prescribed, the debt is generally unenforceable — which makes delay the single most expensive decision a creditor makes.
- Certain acts interrupt prescription, including acknowledgement of the debt by the debtor and the service of process. Knowing which applies to your debt matters.
- Where the National Credit Act applies, there are prescribed steps and notices that must be followed before enforcement. Skipping them can invalidate the whole process.
- Judgment establishes the debt; it does not collect it. Warrants of execution, attachment of emoluments and other mechanisms are separate steps with their own costs.
How we handle it
- 01
Check it is still collectable
Prescription first, then the paperwork: agreement, invoices, statements, and any acknowledgement. This determines whether there is anything to pursue at all.
- 02
Letter of demand
The highest-return step by a wide margin. A significant proportion of debts are settled here, at low cost and without a court ever being involved.
- 03
Summons and judgment
Where demand is ignored, we issue. Undefended matters proceed to judgment relatively quickly.
- 04
Execute
Warrant of execution, attachment of salary or of debts owed to the debtor, and where appropriate a financial enquiry into what they actually have.
What it costs
We are direct about this: for small debts, collection can cost more than it recovers, and we will tell you when that is the case rather than run up fees on something uneconomic. For businesses with recurring collections, we would rather agree a sensible arrangement than bill each file as though it were a one-off.
What moves the number
- The size of the debt and whether it justifies litigation at all
- Whether the debtor defends, which changes the matter entirely
- Whether the National Credit Act applies and its steps must be followed
- Whether execution is needed and whether the debtor has attachable assets
How long it takes
A letter of demand gives its answer within weeks. An undefended summons through to judgment typically takes a couple of months. Execution against a debtor who has nothing takes as long as it takes and may recover nothing — which is why we assess that before you spend.
Common questions
Debt Collections
How old is too old?
Three years is the general prescription period for most debts, running from when the debt became due. Certain events interrupt that clock. If your debt is approaching three years, treat it as urgent today rather than a task for next month.
Is it worth pursuing a small unpaid invoice?
Sometimes a letter of demand alone is worth it, because it is cheap and it works often. Full litigation for a small amount usually is not, and the Small Claims Court may serve you better. We will say which applies to yours.
I am the one being pursued. Can you act for me?
Yes. Not every claim is valid — amounts are overstated, agreements are misread, and some debts have already prescribed. Equally, where the debt is simply owed, a negotiated arrangement is usually far better than a judgment against your name.
I have judgment but no money. What now?
Judgment is the start of collection, not the end. A warrant of execution, attachment of a salary, or a financial enquiry into the debtor’s means are the next steps — and the enquiry is often the one that reveals whether it is worth continuing.