Unpaid tuition fees can be a significant financial burden for private schools. In this matter, our client needed to make small debt claims for unpaid school fees. We took swift legal action, obtained a default judgment, and ensured the debtor paid in full. This post outlines how we successfully facilitated debt recovery and helped our client secure their owed funds.
What was the problem?
A private school faced having to make small debt claims due to unpaid School fees from just a few parents. Sadly this is not uncommon and impacts the school’s activities. Despite it not being a ‘substantial’ amount of money, the debtor’s failure to fulfill their financial obligations, put the school in a difficult position.
What happened?
- We filed small debts claims against the debtors, who did not present a defence.
- A default judgment was obtained in favour of our client.
- We applied for a court summons requiring the debtors to provide relevant financial documents.
- Once the debtors were served, we were contacted to arrange a payment plan.
- Stratos Legal facilitated discussions leading to a commitment by the parties subject to the default judgement to pay the small debt claims in full.
How did we resolve it?
- The court summons prompted action, compelling the debtor to communicate.
- Our early involvement helped negotiate a cost-effective resolution for our client.
Key takeaway
Bruce Pasetti, Legal Practice Director, says “Here is another example of how to successfully recover a relatively small debt without it costing too much money. its Critical to get a specialist debt recovery advice early so the process can be faster and more efficient”.
Stratos Legal has built a reputation for pursuing unpaid substantial debts all the way to small debt claims in an efficient and cost-effective way.
