By Renee Smith a Solicitor of Matthews Folbigg, in our Insolvency, Restructuring and Debt Recovery Group
When looking to recover funds from a Debtor there are numerous ways in which it can be recovered. All of those options should be canvassed and considered carefully. One of those options is an agreed payment arrangement.
Benefits of entering into a payment arrangement include the ability to receive regular periodic payments of funds from the Debtor as well as the ability to monitor the Debtor for any changes in their financial situation. In setting a frequent payment schedule such as weekly or fortnightly, any sudden changes in the Debtor’s financial situation such as the Debtor going into Bankruptcy or the Debtor Company going into external administration can be found out and acted upon quickly. An obvious disadvantage of entering into a payment arrangement is that depending on the amount of the debt owing, it can take some time for the outstanding debt to be paid in full.
Given the cost of proceeding with matters through the Courts, agreeing to a payment arrangement with a Debtor can result in large savings. It should also be noted that proceeding with a matter through the Court does not guarantee that the monies will be repaid should you be successful. A large amount of money can be chewed up disputing the matter through Court and may result in no funds being able to be recovered from the Debtor.
A payment arrangement is not always the best option to pursue payment. However, a wise creditor will at least consider it as part of their collection strategies.
At Matthews Folbigg, we can advise on how to ensure that a payment arrangement will get you the best net financial result, including steps to secure and monitor payments.
If you would like more information or advice in relation to insolvency, restructuring or debt recovery law, contact Renee Smith on (02) 9806 7485 or renees@matthewsfolbigg.com.au or a Principal of the Matthews Folbigg Insolvency, Restructuring & Debt Recovery Group:
Jeffrey Brown on (02) 9806 7446 or jeffreyb@matthewsfolbigg.com.au
Stephen Mullette on (02) 9806 7459 or stephenm@matthewsfolbigg.com.au
