Is there a minimum debt amount?

This service is for commercial debts of more than $5,000. There is no upper limit. The fixed-fee tier depends on the complexity of the claim and documents, not the size of the debt.

Can I recover the debt from the company's director personally?

Not simply because they are a director. A company is a separate legal entity, and its debts are generally its own. A director may be personally liable if they signed a valid personal guarantee or there is another legal basis. We review any guarantee and quote separately for a letter to each guarantor or additional addressee.

Can I recover the cost of the letter of demand from the debtor?

Only possibly, and never automatically. Pre-litigation collection costs may be recoverable if your terms of trade or contract contain an enforceable clause allowing it, and the clause is not unfair or otherwise unenforceable. Without such a clause, the cost of a demand letter is generally yours to bear. We will not claim costs in a letter unless there is a proper basis.

If I go to court and win, will the debtor pay all my legal costs?

Usually not in full. Courts commonly order the losing party to pay some of the winning party's costs, but those costs are assessed under court rules and scales and rarely cover everything you pay your lawyers. In the Magistrates' Court, defended claims of less than $10,000 are generally referred to arbitration. A judgment is also only as valuable as the debtor's ability to pay it.

What if the debtor disputes the debt?

A genuine dispute changes the approach. Our fixed fees cover a demand on straightforward or moderately complex claims; they do not include assessing or responding to a substantive dispute. If a dispute is already apparent, we will quote individually. If one arises after the letter, follow-up work is available at the listed fees or by quote.

Will the debtor pay Parke Lawyers?

No. The letter directs payment to you, the creditor, not to our trust account. Debtor replies sent to us within 14 days of the letter are forwarded to you; we do not negotiate, settle or take further action unless you give further instructions and agree a fee.

Do you need a costs agreement?

We confirm the fixed fee and limited scope by email. You accept by replying and pay the fee before work begins. This arrangement is subject to the law that applies to legal costs and disclosure.

Commercial & Business Law

Commercial Debt Recovery Lawyers Melbourne

Fixed-fee solicitor letters of demand for unpaid business debts of more than $5,000, with no upper limit. Available through our Melbourne CBD and Ringwood offices.

Start Your Enquiry Call 134 134

Fixed fees

Document review and one solicitor letter of demand.

Each fixed fee covers reviewing the relevant documents and preparing and issuing one solicitor letter to one addressee. We choose the tier after reviewing the claim; the amount owed does not decide it on its own.

Standard

$350 + GST

$385 including GST

Straightforward claims that appear undisputed.

For example, clear unpaid invoices for goods or services supplied, with supporting documents and no complaint raised.

Complex

$700 + GST

$770 including GST

Claims with moderate contractual or document complexity.

For example, several contracts or variations, progress claims, interest or costs clauses in terms of trade, or records that need reconciling.

Optional ASIC company extract — $35 all inclusive of GST and disbursement. If the debtor is a company, with your authority we obtain and review a current extract. Itemised separately.
Additional addressees and guarantors — quoted. A letter to a guarantor or any further addressee is quoted separately.
Substantial disputes or complexity — quoted. Where a claim is substantially disputed or complex, we quote individually before any work begins.
Paid before work begins. We confirm the fee and scope by email; you accept by reply and pay before work starts, subject to applicable law.

How the fixed-fee service works.

Conflict and identity checks. Before we accept instructions we check for conflicts of interest and verify your identity.
Fee and scope by email. We confirm the tier, any optional ASIC extract and the limited scope. You accept by reply and pay before work begins.
Document review. We review the invoices, contract or terms of trade and correspondence you provide. If the review shows that a letter of demand is not appropriate, we tell you briefly; the fee covers that assessment.
One letter, one addressee. We prepare and issue the letter. Payment is directed to you, not to our trust account.
Replies for 14 calendar days. We are nominated to receive debtor replies for 14 calendar days from issue and forward them to you as an administrative step.

What is not included. The fixed fee does not include substantive assessment of a reply, negotiation, responding, settlement, court proceedings or enforcement. Those need further instructions and a further fee. Our letters do not threaten proceedings you have not decided to bring, and do not suggest we are retained beyond the agreed scope.

This service forms part of our commercial and business law practice. Our Managing Director, Jim Parke, is an Accredited Specialist (Commercial Law). Contested claims are handled with our litigation and dispute resolution team. For background, read our guide to commercial debt recovery in Victoria.

Follow-up fees.

View fees for work after the letter

Follow-up fees after the letter of demand
Service	Fee
Short reminder letter	$150 + GST ($165 incl. GST)
Assess the debtor's response and brief email advice	$250 + GST ($275 incl. GST)
Assess the response, advise and send one substantive reply	$450 + GST ($495 incl. GST)
Other negotiations, proceedings or enforcement	Quoted separately

Statutory demands for company debts.

Under section 459E of the Corporations Act 2001 (Cth), a creditor may serve a statutory demand on a company for an undisputed debt that is due and payable and at least the statutory minimum, currently $4,000. The company has 21 days to pay or to apply to set the demand aside. Failing to comply can lead to a presumption of insolvency and a winding-up application.

A statutory demand is not an ordinary collection tool. It is unsuitable where there is a genuine dispute or offsetting claim, and serving one wrongly can expose the creditor to a costs order. We advise on whether a demand is appropriate and quote individually.

Preventing bad debts.

Clear terms of trade, a well-drafted credit application and, where appropriate, director guarantees can make future recovery faster and more certain — including enforceable interest and collection-costs clauses that are fair under the unfair contract terms laws.

We prepare and review these documents as a separately quoted service. See also our guide to personal guarantees.

Start your debt recovery enquiry.

Start through our secure MatterFlow enquiry portal or call 134 134. We will run conflict and identity checks and confirm the fixed fee and scope by email. It helps to have these details ready:

Your business name and entity type (the creditor)
The debtor's name and entity type
The amount owed
Whether the debtor has disputed the debt
Which invoices, contracts or terms of trade you hold
Whether anyone signed a guarantee
Whether you want a current ASIC company extract ($35, all inclusive)
How you would like any reply handled

Please do not send invoices or other documents until we have completed conflict and identity checks and confirmed the fixed fee and scope by email.

Your browser cannot display the embedded enquiry form. Open the enquiry form directly or call 134 134.

Call 134 134

Our offices.

Melbourne CBD
Level 1, 480 Collins StreetMelbourne VIC 3000
Ringwood
281 Maroondah HighwayRingwood VIC 3134

See our Ringwood commercial lawyers page for local services.

Frequently asked questions.

Plain-English answers about recovering unpaid business debts in Victoria.

Is there a minimum debt amount?: This service is for commercial debts of more than $5,000. There is no upper limit. The fixed-fee tier depends on the complexity of the claim and documents, not the size of the debt.
Can I recover the debt from the company's director personally?: Not simply because they are a director. A company is a separate legal entity, and its debts are generally its own. A director may be personally liable if they signed a valid personal guarantee or there is another legal basis. We review any guarantee and quote separately for a letter to each guarantor or additional addressee.
Can I recover the cost of the letter of demand from the debtor?: Only possibly, and never automatically. Pre-litigation collection costs may be recoverable if your terms of trade or contract contain an enforceable clause allowing it, and the clause is not unfair or otherwise unenforceable. Without such a clause, the cost of a demand letter is generally yours to bear. We will not claim costs in a letter unless there is a proper basis.
If I go to court and win, will the debtor pay all my legal costs?: Usually not in full. Courts commonly order the losing party to pay some of the winning party's costs, but those costs are assessed under court rules and scales and rarely cover everything you pay your lawyers. In the Magistrates' Court, defended claims of less than $10,000 are generally referred to arbitration. A judgment is also only as valuable as the debtor's ability to pay it.
What if the debtor disputes the debt?: A genuine dispute changes the approach. Our fixed fees cover a demand on straightforward or moderately complex claims; they do not include assessing or responding to a substantive dispute. If a dispute is already apparent, we will quote individually. If one arises after the letter, follow-up work is available at the listed fees or by quote.
Will the debtor pay Parke Lawyers?: No. The letter directs payment to you, the creditor, not to our trust account. Debtor replies sent to us within 14 days of the letter are forwarded to you; we do not negotiate, settle or take further action unless you give further instructions and agree a fee.
Do you need a costs agreement?: We confirm the fixed fee and limited scope by email. You accept by replying and pay the fee before work begins. This arrangement is subject to the law that applies to legal costs and disclosure.