Letters of Demand and Statutory Demands

We have specialised in debt collection in Perth for over 25 years and have successfully handled debt recovery legal action in all courts in Western Australia for the recovery of the full range of debts of all sizes.

Our clients in debt recovery include companies of all sizes, small and large business, as well as individuals.

Letters of Demand on a lawyer's letterhead have an impact.

Debt collection is a task that must have strict attention paid to it and prompt letters of demand, that are well-drafted are the best debt collection tool.

Our rates and fixed prices are lower than the prices charged by many Perth Commercial law firms because we own our offices so we don't pay the exorbitant St George's Tce rent that many commercial law firms do.  

Further information can be found here regarding our fixed fees.

In Western Australia if you have a costs recoverable clause in your contract you may recover most if not all of your legal fees. If you don't you will generally recover two thirds of your legal fees.

The greatest threat to debtors, including individuals and companies, is to receive a letter of demand from a law firm followed by a summons. In some cases a statutory demand or winding up notice may also be the best method in respect of debts owed by companies.

At Aherns Lawyers our letters of demand explain to debtor companies and individuals that if legal proceedings are required to be instituted against them those proceedings will include a claim for interest on the debt and a claim for the costs of the proceedings to be paid by the debtor. In our experience our letters of demand have significant prospects of success. If they are not successful then clients are urged to proceed immediately to a summons.

If you don't have a costs recoverable clause we can draft one for you in a set of terms and conditions.

Whilst the court procedures available never vary it is important not to adopt a rigid formula to every debt recovery case. At Aherns Lawyers we will speak to every client about every debt including seeking alternative addresses for letters to be sent to cause maximum prospects of early recovery.


We deliver practical cost effective legal advice. Because our practice is located outside of the Perth CBD our hourly rates are 20% lower than the standard rates charged by most Perth law firms practising in commercial law and commercial litigation in Perth.  Many law firms are over charging clients due to their enormous operating costs.  We provide specialised litigation and debt recovery and commercial law services without the top tier price tag.

See the Hourly Rates page on the website for more details.

Our Proven Experience

For 25 years we have acted for businesses and companies of all sizes, builders, sub-contractors and property owners, as well as for financial institutions including the Bank of Melbourne, United Credit Union now Beyond Bank Australia, National Australia Bank, Bank of Queensland and large National Mortgage Insurer MGICA.  However this work, whilst important, has certainly not been more important to us than helping businesses and people having problems with outstanding debts.

Debt Recovery is Urgent

We understand the urgency of recovering a debt as quickly as possible.  We are committed to providing an efficient and cost effective debt recovery service regardless of the size of the debt. We can tailor the debt recovery strategy to your individual needs and the nature of the debt to ensure the best outcome is reached. We will ensure you are kept informed as to the progress of the debt recovery action. We can also provide you with our advice on how to avoid disputes arising in the future and how to protect yourself in the event a dispute does arise.

As each case is different, we can also assess whether or not it would be best to serve a letter of demand, proceed straight to a summons or alternatively serve a bankruptcy notice on an individual or a winding up notice on a company.

We can provide you with advice on the best methods of recovering moneys owing pursuant to contracts, including advice on interest and penalties and moneys recoverable for variations and advice on the best methods of negotiating payments in the event that debtors are experiencing financial difficulties including the provision of guarantees, irrevocable authorities to pay and other types of securities.

Always Have Costs Clauses In Your Contracts

If you are selling goods or services you should always have terms and conditions. We can prepare these for you if you do not have terms and conditions. These can be included with your quote to your clients. We can provide you with terms and conditions which will ensure that you will be able to claim your costs of recovery of any outstanding debt. You can then have written in your contract a clause that provides for all costs of recovery of any outstanding debt to be claimable from the debtor. The clause must be well prepared but it is fairly brief and will allow you to recover more legal fees and other expenses that you have incurred then you otherwise would.