What should I do if someone won't pay their invoice?

If an invoice remains unpaid, it's important to act promptly. Depending on the circumstances, the next steps may include contacting the debtor, issuing a formal letter of demand, negotiating a repayment arrangement, or taking legal action. Seeking advice early can improve the likelihood of recovering the debt while minimising costs.

Can I recover a debt without going to court?

Yes. Many debt recovery matters are resolved without court proceedings. A well-prepared letter of demand, early negotiation, or a repayment agreement is often enough to encourage payment. Where these options are unsuccessful, we can advise on the most appropriate legal action.

What is a statutory demand?

A statutory demand is a formal legal notice that can be issued to a company requiring payment of a debt within a specified timeframe. If the debt is not paid or disputed appropriately, it may lead to insolvency proceedings. Statutory demands are only suitable in certain situations, so it's important to obtain legal advice before issuing one.

How long should I wait before taking legal action to recover a debt?

The sooner you act, the better. Delays can make debts more difficult to recover, particularly if the debtor's financial position changes. Obtaining legal advice early can help you understand your options, preserve your rights, and determine the most effective recovery strategy.

Can I recover legal costs from the person who owes me money?

In some circumstances, you may be able to recover some of the legal costs associated with debt recovery, depending on the terms of your agreement and the outcome of the matter. We can advise you on what costs may be recoverable in your particular situation.

Debt Collection & Recovery | Smith and Partners Lawyers

Outstanding debts can place significant pressure on cashflow, business operations, and personal finances. Whether you're owed money by a customer, contractor, tenant, or another party, taking action early can often improve your chances of recovering what you're owed while minimising unnecessary cost and disruption.

At Smith and Partners, we provide practical advice and debt recovery solutions for businesses and individuals throughout Auckland and New Zealand. Our goal is to help you recover outstanding debts as efficiently as possible while protecting your commercial interests.

Common debt recovery matters

Our team regularly assists clients with:

Unpaid invoices
Outstanding business debts
Debt collection demands
Enforcement of payment obligations
Recovery of money owed under a contract
Statutory demands
Enforcement of guarantees
Personal Property Securities Act (PPSA) matters
Judgment enforcement
Negotiating repayment arrangements

Every debt recovery matter is different, and the most appropriate approach will depend on the circumstances of the debt and the parties involved.

Your debt recovery options

Recovering a debt doesn't always require court action. In many cases, early legal advice and prompt action can encourage payment before formal proceedings become necessary.

Depending on your circumstances, options may include:

Letters of demand
Negotiated repayment arrangements
Statutory demands
Court proceedings
Enforcement of judgments

Our focus is always on finding the most practical and cost-effective way to recover the money owed to you.

What should I do if someone won't pay their invoice?
If an invoice remains unpaid, it's important to act promptly. Depending on the circumstances, the next steps may include contacting the debtor, issuing a formal letter of demand, negotiating a repayment arrangement, or taking legal action. Seeking advice early can improve the likelihood of recovering the debt while minimising costs.
Can I recover a debt without going to court?
Yes. Many debt recovery matters are resolved without court proceedings. A well-prepared letter of demand, early negotiation, or a repayment agreement is often enough to encourage payment. Where these options are unsuccessful, we can advise on the most appropriate legal action.
What is a statutory demand?
A statutory demand is a formal legal notice that can be issued to a company requiring payment of a debt within a specified timeframe. If the debt is not paid or disputed appropriately, it may lead to insolvency proceedings. Statutory demands are only suitable in certain situations, so it's important to obtain legal advice before issuing one.
How long should I wait before taking legal action to recover a debt?
The sooner you act, the better. Delays can make debts more difficult to recover, particularly if the debtor's financial position changes. Obtaining legal advice early can help you understand your options, preserve your rights, and determine the most effective recovery strategy.
Can I recover legal costs from the person who owes me money?
In some circumstances, you may be able to recover some of the legal costs associated with debt recovery, depending on the terms of your agreement and the outcome of the matter. We can advise you on what costs may be recoverable in your particular situation.

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