Answer by Robert Bailey, Adelaide 5000 SA

• As a creditor the first step in instructing a lawyer will be to provide accurate details. This may sound simplistic but getting details and information correct from the outset is essential.
• The most important things your lawyer will need to know about are:
  • the nature of the claim and any complex factual or legal issues it involves; and
  • whether there is a potential dispute.

• As a creditor you may believe that the debt you are entitled to is not disputed. A lawyer will need to make sure of this for themselves. They should be able to do so by looking at the history of the matter.
• If there has been any conversation or correspondence between you and the debtor prior to lawyers getting involved you must make sure your lawyer knows about it.
• Matters are more likely to be disputed where there is a labour component rather than simple supply claims. It is very important that you tell your lawyer if the debtor has made any complaints about the work you are trying to enforce payment for.
• At the first meeting you will need to provide your lawyer with the following information:

• your correct and full business entity name. If the creditor in the legal proceedings is to be someone other than you such as an insolvency administrator ensure that the correct information for the actual creditor is accurately provided;
• your ACN and ABN if you have one;
• your postal address;
• the name of any person to whom correspondence is to be addressed to the attention of;
• your telephone and fax number
• your email address if you have one;
• your trading address if it is different to the postal address. This address should be quoted in all documentation rather than the postal address;
  • the amount of the debt;
  • what the debt is for; and
  • some general history in relation to the matter. This will include details of prior written contact with the debtor especially details of any written demands or previous payment arrangements or details of any potential dispute.

• Legally a debtor can ask you for the documentation you are relying on in support of your claim. This is even more critical in litigation. Debt recovery action is strengthened if you can provide your lawyer with all relevant documentation including:
  • signed contracts;
  • business records detailing:
    • when and how the work was performed; or
    • when the products were delivered;
  • all correspondence such as copies of:
    • emails: or
    • letters sent;
  • invoices or receipts; and
  • file notes of any conversations or discussions:
    • on the phone or
    • in person.
• Your lawyer will probably want to take copies of these documents. Debtors will often request copies of invoices or other documents in response to letters of demand. Having copies on file means your lawyer can respond to such requests immediately and prevent unnecessary delays.
• It is also useful to provide your lawyer with any account documentation such as credit application forms filled out by the debtor.