Debt Collection or Legal Action: Which is Better?

Debt Collection or Legal Action: Which is Better?

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by Katherine Hymer

Here at Debt Recoveries Australia, we collect debts on a commission-only basis. If we are not successful, we will discuss with our client the pros and cons of going legal. If we and the client decide that legal action is the right choice, we then move the case to our legal team, ADC Legal, to recover unpaid debts.

This article outlines the benefits of hiring a debt collection company versus hiring a lawyer plus the benefits of having debt collectors and lawyers in the same company working closely with your case.

Are you hiring a Debt Collection company?

Debt collecting companies specialize in recovering unpaid debts. Our job description is in the title. It’s as simple as that.

Not only are debt collecting companies more familiar with the ins and outs of what action needs to be taken to successfully retrieve unpaid debts, but we also embody an authoritative tone that will act for you to persistently pursue debts.

We at Debt Recoveries Australia have been exposed to a whole array of debtors, and with this familiarity, we have a number of ways to make a recovery from different types of debtors.

Here are the key benefits of a debt collector over a lawyer:

  • No win no fee – if this does not apply, find another debt collecting agency
  • Debt collectors working for a commission have an incentive to collect money, whereas lawyers cannot charge a commission, so may not be as motivated to collect the debt
  • Specialist collectors have the resources and knowledge of skip tracing (finding the debtor) and debt negotiation whereas lawyers tend to be generalist providers of legal advice in a range of areas

You can read more about how debt collectors work here.

Are you getting a Lawyer?

Do not hire any old random lawyer. Instead, hire a lawyer who specializes in debt recovery. ADC Legal are specialist debt recovery litigators.

We will work with you to carefully consider whether a debt is economically viable to take to court before proceeding with further legal action.

Our legal team will work with you to decide if legal action is the best action to recover unpaid debts.

Key benefits of a lawyer over a debt collector:

  • Lawyers have the ability to secure the debt by entering a judgment through the courts which debt collectors are unable to do
  • More complex issues may be better handled by a lawyer
  • Contractual disputes are better handled by a lawyer as they have a thorough understanding of legal systems and precedent cases

You can read more about the benefits of using a lawyer to recovery unpaid debts here.

Having everything in the one spot can save you a lot of time and money. You no longer need to worry about the debt, what collection agency to work with, or choose between different lawyers in different states. You can trust that Debt Recoveries Australia and ADC Legal will not only have a strong understanding of your case, but that by keeping it in the one area, this can increase your chance of recovery. We also cover the whole of Australia. Job done!

To discuss a current outstanding debt OR a debt that you have abandoned recovery on, please call us here at ‘Debt Recoveries Australia’ and one of our members will be happy to give you more information.


Debt Recoveries Australia is the expert at recovering your outstanding debts without the drama. For more information, email us at or call 1300 799 511. Tell us your problems on Skype at “debtrecoveries”.

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4 Comments on “Debt Collection or Legal Action: Which is Better?

  1. That’s interesting that debt collection services only charge when the debt is won. That removes a lot of liability from the firm hiring the service. This must be really beneficial for small businesses that could be ruined by unpaid debts.

    • Thanks Larry. Yes, it makes the cost of debt recovery zero for potential clients. Also, if you build into your T’s and C’s that you will charge your recovery fee and/or legal fees back to your debtor, then your recovery agent can also recover these fees as well.

  2. Yes, I totally agree with what you said. I think that seeking for a professional help will definitely help to get a high chance to recover from debts. Thanks for sharing this article. This article is very helpful.

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