Debt Recovery Lawyers Brisbane and Queensland-Wide
An unpaid invoice doesn't fix itself by waiting. Every week it sits there, your leverage narrows and the debtor's excuses multiply.
Start with the Fast-Track Assessment
Tell us how old the debt is and what you have already sent. It takes about a minute, and it decides which rung of the ladder you start on.
Working out which rung of the ladder you are on? Start here.
About you
Or call (07) 5370 8759 and speak to our experts directly.
The debt recovery ladder
Odyssey Legal helps Queensland businesses recover what they're owed, from the first letter of demand through to judgment and enforcement, with a clear view of the cost and timeframe at every stage.
Debt recovery escalates in stages, and each rung has its own cost, timeframe, and pressure point. Most debts resolve at the first or second rung. Understanding the full ladder helps you decide how hard to push and when.
Four rungs, and what each one costs you
All four are here at once rather than one behind a tab, because the argument of this section is that they escalate. You cannot see an escalation one rung at a time.
- Letter of demandWhat happensFormal written demand for payment before any proceedingsTypical timeframeResponse requested within7 to 14 days
- Statement of claim or applicationWhat happensProceedings filed in QCAT or the appropriate courtTypical timeframeWeeks to a few monthsdepending on whether it's defended
- JudgmentWhat happensCourt or tribunal order confirming the debt is owedTypical timeframeFaster if undefended (default judgment); longer if contested
- EnforcementWhat happensGarnishee order, enforcement warrant, statutory demand, or bankruptcy noticeTypical timeframeDays to weeksonce judgment is secured
Which rung you start on is not a matter of temperament. It depends on the size of the debt, whether the debtor is a company or an individual, and whether there is anything to recover from. That is the first question in the consultation, and it is usually answerable in fifteen minutes.
The debts we recover
A debt is not just a number. What it arises from decides which rules apply, what you have to prove, and which forum will hear it.
- Unpaid trade invoicesGoods or services supplied and not paid for on the agreed terms. The contract, the order and the delivery record are the case.
- Construction and subcontractor debtsProgress claims, final claims, variations and retention. These carry their own statutory payment regime, which moves faster than an ordinary debt claim.
- Loans and personal guaranteesShareholder loans, inter-company loans and private lending. A director's guarantee turns a company debt into a personal one, and changes every enforcement option.
- Commercial rent and arrearsRent, outgoings and make-good. The lease sets its own default and re-entry process, and following it precisely is what makes the arrears recoverable.
- Professional and service feesFees for work already delivered, where the objection to the quality of it tends to arrive only after the invoice does.
- Judgment debtsLiability already established and still unpaid. This is an enforcement exercise from the first day rather than a claim.
Construction debts run on their own statutory payment regime, which we deal with through our building and construction practice, and a debt owed to the ATO is a different exercise again, handled as a tax debt dispute.
Where a company has stopped paying everyone rather than disputing your invoice in particular, the question changes from recovery to insolvency, and the order you act in starts to matter a great deal.
The letter of demand
A letter of demand is the formal written notice that sets out the debt, your legal position, and a deadline to pay, generally 7 to 14 days. It's often the cheapest and fastest way to resolve a debt, and it's a step QCAT expects you to have taken before it will hear a dispute.
A lawyer-drafted letter carries more weight than a template pulled off a generic site. It signals you're serious and prepared to escalate, which is frequently enough to prompt payment on its own.
We have put together a straightforward template you can use as a starting point for a simple debt. For company debtors, construction disputes, or Australian Consumer Law claims, our DIY Templates shop has purpose-built versions drafted by our lawyers for those specific situations.
Negotiating a resolution before court
Not every debt needs to reach a courtroom, and in a lot of cases it shouldn't. A payment plan or settlement agreed after a letter of demand can get you paid faster than litigation, without the filing fees, the wait for a hearing date, or the risk of an adverse costs order if something goes wrong along the way.
The trade-off is real too. A payment plan means accepting instalments instead of a lump sum, and a settlement might mean accepting less than the full amount to secure certainty. Whether that trade is worth it depends on the debtor's actual capacity to pay, since a generous payment plan with a debtor who was never going to pay in full just delays the inevitable escalation to court.
Where we do negotiate a resolution, we build in the same protections a judgment would give you:
A payment plan without those protections is just a longer, less enforceable version of hoping they'll pay eventually.
Choosing the right forum
Where you file depends entirely on the amount owed. Filing in the wrong forum wastes time and, in QCAT's case, may mean your claim gets capped at less than you're actually owed.
If the debtor doesn't respond to a properly served claim, you can generally apply for default judgment without a full hearing, which is the fastest route from filing to an enforceable order.
The QCAT costs rule is the one that catches people out. A claim just under the ceiling is cheap to run and you will not recover a cent of what you spend running it, win or lose. A claim just over it costs more and puts your legal costs back on the table. Where the debt sits close to $25,000, that arithmetic is worth doing before you file rather than after. QCAT publishes its own guidance on minor debt claims.
Judgment, and then enforcement
A judgment turns a disputed claim into an enforceable legal asset. Once obtained, it carries accumulated interest and legal costs on top of the original debt.
How long a judgment stays good for
A judgment does not expire the moment the debtor stops answering. In Queensland it stays enforceable for years, and that matters when the debtor has nothing today but may have something later.
Costs generally follow the outcome, meaning a successful claimant is often entitled to recover their legal costs from the debtor on top of the debt itself.
Getting judgment is only half the job. If the debtor still doesn't pay, Queensland's enforcement mechanisms include:
- Enforcement warrantsFor seizure and sale of the debtor's property.
- Garnishee ordersRedirecting funds owed to the debtor by their bank, employer, or another third party, straight to you.
- Examination ordersCompelling the debtor to disclose their financial position under oath, useful where assets aren't obvious.
Beyond those, a judgment unlocks the two instruments that put the debtor's own survival on the line. Which one you get depends entirely on whether you are owed money by a company or by a person.
Statutory demand
21 daysto pay a debt of $4,000 or moreA presumption of insolvency arises and winding up becomes available.Bankruptcy notice
21 daysto pay a debt of $10,000 or moreAn act of bankruptcy is committed.Both tools apply serious pressure precisely because the consequence of ignoring them is severe.
The statutory demand comes from the Corporations Act 2001 (Cth), and getting one wrong is expensive: a demand with a defect can be set aside with costs against you. We deal with both statutory demands and the bankruptcy and insolvency process these enforcement tools sit within.
What the debtor will say back
A debtor who does not intend to pay rarely says so. These are the arguments that actually arrive, and each one changes what the claim has to prove.
The debt is not owed at all
A denial that any contract was formed, that the terms were ever agreed, or that the invoice reflects what was agreed. It turns on the contract documents, the correspondence, and how both parties actually behaved before the dispute started.
The amount is wrong
Liability accepted, quantum disputed. This is where allegations of overcharging, incorrect invoicing, disputed variations and unacknowledged part payments arrive, and it is the most common of the eight.
The work was defective or incomplete
Raised wherever goods or services were supplied, and raised routinely in construction and professional services, including where the alleged defect is minor and has nothing to do with the amount claimed.
We are owed money too
A set-off or a counterclaim arising out of the same or a related transaction. It is rarely a complete answer to the debt, but it can change the forum, the procedure and the timing, which is often the point of raising it.
You agreed to give us more time
An alleged payment plan, extension or variation agreed after the debt arose. Whether it binds you depends on whether it was legally binding when it was made and whether it can now be proved.
The debt is too old
The limitation period in Queensland is generally six years, and a statute-barred debt is unrecoverable. It resets if the debtor pays something towards it or acknowledges it in writing. This is the one defence that is decisive, and it has to be identified before you file rather than after.
We cannot pay
Insolvency does not extinguish a debt, but it changes what is worth doing about it. Judgment against a company with nothing in it is a piece of paper, and the enforcement steps that follow are the ones that matter.
You did it wrong
Improper service, the wrong forum, or a missed pre-action step. None of these defeat the claim on its merits. All of them cost time and money, and all of them are avoidable at the outset.
None of these is a reason not to pursue a debt. They are the reason to find out which one is coming before you file, because the answer changes the forum, the evidence and sometimes whether it is worth doing at all. The limitation period is the one to check first.
Why Queensland businesses instruct Odyssey Legal
Odyssey Legal is a Sunshine Coast based litigation firm servicing all of Queensland, including Brisbane, the Gold Coast, and Central and North Queensland. We move quickly at every stage, from the first letter of demand through to enforcement, because a debt that sits unaddressed rarely gets easier to collect.
How we run a recovery
We read the contract, the invoices and the correspondence, check the limitation period, and tell you what the debt is actually worth pursuing for. That includes saying so when it is not.
Drafting and serving a letter of demand that sets out the debt, the legal basis for it and a deadline. Most debts stop here, and the choice between a demand and proceedings is worth making deliberately.
Agreeing terms that are documented and enforceable, with a default clause and, where the debtor is a company, guarantees from the people behind it.
Filing in the forum the amount puts you in, serving properly, and pushing for default judgment where the claim is undefended. Larger commercial claims are run with our commercial litigation team.
Converting the judgment into money: warrants, garnishee orders, examinations, and where they are the right pressure, statutory demands and bankruptcy notices.
Damon Laffin
Start recovering what you are owed
Every week an invoice sits unpaid, your negotiating position weakens and the debtor's options multiply. Four questions, about a minute, and we will tell you which rung of the ladder fits your situation.
If it has been sitting for months, start here before the limitation period becomes the problem rather than the debtor. Or call (07) 5370 8759 if you would rather talk it through first.
If the invoice is recent, a letter of demand is usually the whole job.
FAQs
How can Odyssey Legal assist with debt recovery?
Our team provides tailored strategies for debt recovery, including negotiations, legal proceedings, and enforcement actions.
Can I recover debts from a company in liquidation?
If the company debtor is in liquidation, then you may lodge a proof of debt to seek payment from the liquidation. However, unsecured creditors usually only obtain a nominal (if any) payout from the liquidation process.
Alternatives to court for debt recovery?
Alternatives to court proceedings to recover debts include QCAT, a letter of demand, mediation, arbitration, or negotiations.
How can I enforce a court judgment for debt recovery?
Enforcement options vary and are dependent on whether the debtor is an individual or a company. If the debtor is an individual, then enforcement options include (without limitation) enforcement warrants for seizure and sale of property or redirection from financial institutions or bankruptcy proceedings. If the debtor is a company, then enforcement options include (without limitation) enforcement warrants for seizure and sale of company property or a statutory demand and wind up proceedings.
What is a default judgment?
If the debtor doesn't respond to a claim, the court may (upon application) issue a default judgment in your favour, allowing enforcement actions.
Can I recover legal costs incurred during debt recovery?
If court proceedings have been commenced and you are the successful party, then you are often entitled to legal costs. The general principle is that costs follow the event.
What is the statute of limitations for debt recovery?
In Queensland, the limitation period is generally six years from the date the debt became due. However, the limitation period may be reset if payment is made towards the debt or the debtor acknowledges the debt.
When should I consider legal action for debt recovery?
If informal attempts fail and the debt is significant, legal action may be appropriate to recover the amount owed.
What is a letter of demand?
A Letter of Demand is a formal written notice requesting payment or action, usually issued before starting legal proceedings. It outlines the debt or issue, your legal position, and a deadline for the recipient to comply. It is often the first step in the debt recovery process to try and resolve the dispute without legal proceedings.
Can I charge interest on overdue debts?
If your contract specifies interest charges for late payments or outstanding debts, you can enforce them.
What is the process for recovering a debt in Australia?
The debt recovery process can vary but includes issuing a letter of demand, commencing proceedings in civil & administrative tribunal (QCAT or otherwise) or court, or negotiating a settlement agreement.