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All our legal work is reffured to Michael Robinson of Turner Hopkins Barristers & Solicitors
DEBT RECOVERY – HOW TO HAVE THE COSTS OF RECOVERY MET BY YOUR DEBTORS
A difficulty encountered by almost all businesses is that of credit control and debt recovery. Surveys constantly illustrate an unacceptably high level of default and incidence of bad debts being experienced by New Zealand businesses.
But there is good news…
Over recent months, changes to the District Court regulations have resulted in the legal procedure of pursuing debts through the District Courts becoming far more attractive and commercially appealing. In summary, the costs awarded to a successful plaintiff (creditor) have increased dramatically. By way of example, the costs awarded by a District Court in the case of a successful claim where Judgment is achieved by default (i.e. no formal steps are taken to defend the claim by the debtor) have increased to over $1,000 per claim.
Our services
Over the last five years, Turner Hopkins has established one of New Zealand’s largest and most efficient District Court recovery practices. We have implemented systems and achieved efficiencies resulting in a situation where the costs incurred by our clients in pursuing simple debts are often below the costs that are ultimately awarded once a Judgment is obtained. The net result is that you, the creditor, can receive a profit from commencing a claim. If the debtor wishes to settle once the claim is commenced, the costs that would be awarded up to that point of the proceeding are due and payable, and can still be recovered.
An example is as follows:
a) Debt owing to you: 1,500
b) Commencement of proceedings – recoverable amount 860
c) Judgment entered by default – recoverable amount 172
d) Total amount owing once Judgment is entered $2,532
Unfortunately we are not able to provide any reliable indication as to Turner Hopkins' likely costs to commence a claim, as each cost varies due to the nature and complexity of the claim. We are, however, confident that the costs charged by us will not only be most competitive but will, in many cases, be equal to or below the costs that are recoverable. Our costs are always reduced significantly in the case of high volumes of instructions.
Please contact Michael Robinson should you wish to discuss the manner in which our legal services may be of assistance to you or your business.
Michael 09 486 2169 mrobinson@turnerhopkins.co.nz www.turnerhopkins.co.nz
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