Is your debt worth pursuing? Knowing when to cut your losses

If you're a small business owner, you may find yourself in a situation where you have supplied your goods and/or services to a client but you haven't been paid. In this situation, it can be difficult to know whether your debts are worth pursuing and when you should speak with a lawyer for advice or to help with debt recovery.

Taking it to Court

In NSW, in order to sue a person or company for a debt of less than $100,000, you will likely need to commence proceedings in the Local Court of New South Wales. It is important to know before commencing proceedings in the Local Court that:

1. you will have to pay a filing fee (of up to $618);
2. the Court proceedings can last anywhere up to 18-months from the time that you commence proceedings through to obtaining an outcome; and