Debt collection in plain English.
All the jargon, translated.
Letter of Demand (LoD)
A formal written request to pay by a certain date. Usually the first legal step. Not magic — but courts like to see you tried.
Statutory Demand
A formal notice under s459E Corporations Act against a Pty Ltd owing over $4k. Ignore it for 21 days and you can be wound up. Very effective.
Judgment debt
A debt that a court has officially ruled you're owed. Doesn't mean the debtor has paid — it just means a court says they must.
Garnishee order
Post-judgment. A court order directing someone who owes the debtor money (like their employer or bank) to pay you instead.
Writ of execution / Warrant
Post-judgment. Allows the sheriff to seize and sell the debtor's goods to pay you.
Examination summons
Post-judgment. You can haul the debtor into court and make them answer under oath about their assets and income.
Liquidated claim
A debt of a specific, undisputed amount (like an unpaid invoice). These are the easy ones.
Unliquidated claim
A claim where the amount isn't fixed (like damages from a dispute). Harder, slower, usually needs a lawyer.
Default judgment
Judgment you get automatically because the debtor didn't file a defence in time. Good news.
Bankruptcy Notice
Post-judgment option against individuals owing $10k+. 21 days to pay or they commit an act of bankruptcy.
ACCC Debt Collection Guideline
The rules all collectors must follow — contact hours, frequency, no harassment, no misrepresentation. We comply with these by default.
Pty Ltd
A proprietary limited company. Has an ACN. Can be wound up via Statutory Demand. Different legal entity from the people who own it.
Statute of limitations
The deadline to sue. 6 years in most states, 3 years NT. Miss it and the debt is unenforceable forever.