By Jodie Rodrigues, solicitor at Matthews Folbigg in the Insolvency, Restructuring and Debt Recovery Group
So you’ve found an outstanding invoice. Sure, all invoices are valuable to a business but now you’re considering whether there is any commercial benefit to asking a lawyer to chase the debt. There are real advantages in using a lawyer rather than a debt collector to assist with collection of your debts. There are three main questions you should ask when considering which invoices to chase through legal proceedings:
1. What can be recovered?
The obvious recoverable amount is the value of the invoice.
If proceedings are commenced to recover the invoice, you can claim interest, filing fees, process server fees and some set amounts for your legal costs. These costs are capped at the court’s rate and will depend on the amount of the invoice.
Invoices will normally be charged under an agreement or contract. Depending on the terms, it may be possible to recover interest and costs at the contract rate. Otherwise there is generally a statutory entitlement to interest at rates specified in the court rules.