Legal recovery is when legal action is taken over an outstanding debt, there are a number of steps involved and it is important to understand this process.

The initial steps by a lawyer are to instigate legal recovery proceedings in the form of a complaint against the company as the first defendant, with the director as guarantor as the second defendant.

The complaint is usually filed in the Magistrates’ Court and on the return of the complaint the matter proceeds by the service of the complaint against the first and second defendant. On the basis no defence is filed by the defendants, we then proceed to file with the court for a Default Order against the first and second defendant. The default order would show that the defendants owe money to the Plaintiff Company; the amount owing is shown on the Order as a Claim: (original debt), Legal Costs: (fixed cost to issue proceedings) and Interest: (calculated at 10.5% x number days between filing complaint and filing for a default order).

Once we have the court order the lawyer can prepare a “Warrant to Seize Property” for court filing, once stamped and returned by the court to the lawyer the warrant to seize property is placed with the Sheriff’s Office for seizure of assets at the residential property. The expected outcome of this is the return of the warrant as unsatisfied, meaning no suitable assets are identified at the residential property.

The next important step is to upgrade the warrant of seizure and sale to the Supreme Court for the seizure and sale of the real estate (residential property). Once the Sheriff’s Office Real Estate division has the Supreme Court Warrant they will proceed in a most structured and organised manner and finally have the property set down for auction. Payment made prior to the auction date will stop the auction from proceeding otherwise the property is sold.

Brodie Collection Services is one of Australia’s leading debt collection firms, with offices in Melbourne and Brisbane. They can provide ASIC search services from a low $46.50. They also provide debt collection services on a no collection, no charge basis. You can trust them with all your debt recovery needs. Visit to find out more about the debt collector services that are offered by Brodie Collection Services or call us on 1300 276 343.

This information provides a general summary only and is not intended to provide specific advice for your individual circumstances. It is not a substitute for professional advice and should not be relied upon as such.