Debt Recovery

When is Debt Recovery neccesary?

Cash flow is king, and this is no different for bodies corporate. It is the lifeblood of a body corporate and must be managed so that the body corporate can pay its expenses and remain financially viable. Indeed, the body corporate legislation includes a positive obligation on bodies corporate to commence recovery proceedings within a specific period after a contribution becomes overdue.

The body corporate legislation establishes a clear method for fixing budgets, deciding amounts to be contributed by each owner and notifying owners of those contributions. It also allows bodies corporate to introduce incentives to pay those contributions by way of allowing a discount for on time payments, charging penalty interest for overdue payments, and entitling a body corporate to recover its reasonable recovery costs from the defaulting owner.

Despite all these methods and incentives owners will, from time to time, and for varying reasons, not pay their contributions. This is where we come in, and we find that early resolutions are more likely achieved in matters that are referred with no more than two to three contribution periods outstanding.

At Small Myers Hughes, we provide debt recovery services that range from letters of demand through to selling properties, bankruptcy and company liquidations. You can expect:

1.   quick turnarounds for each stage in the debt recovery process;
2.   contemporaneous debt recovery updates;
3.   owners to pay the body corporate’s reasonable recovery costs;
4.   cost certainty through our fixed price packages.

Our highly experienced team of body corporate and dispute resolution lawyers are committed to maintaining the financial well-being of your scheme and ensuring that your body corporate debts are recovered in the quickest way possible and at no cost to you.