This month we have outlined a fabulous success of CollectIT's - one which took an unbelievable amount of hours in our office and resulted in both successful payments for our clients and enormous satisfaction for our team.
CollectIT's client (Client A) in the travel industry was owed $13,057.11 by an ex-employee who had promised to repay the money. Funds were misappropriated in 2007 and although some payments had been made, they were not consistent. In November 2011 CollectIT was asked by Client A to commence debtor management.
After this was ignored by the debtor, Court action was initiated in December 2011 and a charging order was put over the debtors' home in May 2012.
In August 2012 a second party (Client B) who was owed $68,437.33 by the same debtor under similar circumstances also engaged CollectIT to carry out court action.
A court order was obtained on behalf of Client B and a second charging order was put over the debtors' home.
At this stage the debtor had failed to respond to the two sets of court documents which had been served on them personally.
A sale order was drawn up by CollectIT, in order to force the sale of the debtors' home and once this was served in January 2013, the debtor responded asking to sell the property privately and then pay the money owing rather than being forced to do so.
However in March 2013, the story changed and the debtor disputed ever being served any documentation. A hearing date was set for July to have the judgments set aside. This hearing did not proceed due to CollectIT's evidence to the contrary.
In July 2013 the property was listed for sale by the debtor. Elation was short lived when the first contract fell over due to the fact that the property had no code of compliance. The property was sold under auction without code of compliance in December 2013.
Fortunately there was sufficient equity in the property to firstly pay the balance of the mortgage and the debts owed to both Client A and Client B.Result: Our clients were paid the full amount owing to them after more than 6 years ($68,437.33 and $13,057.11)