WWWalker Press Releases

'loophole for debtors'

Central Western Daily, 23 May 2007

There is a loophole in Small Claims of Local Court that lets debtors pay off a bill in tiny instalments e.g. $25/fortnight for months on end adding to the bill by increasing administration and decreasing cashflow. I am writing this to let other technical people and tradesmen know they need to watch out for customers who try this and put unrealistic pressures on cashflow of their businesses. It happened to mine and the only way out seems to be to discontinue the action to stop the rorting and write off the loss or burn cash for months to collect all the payments. The payment will be far outweighed by the costs to collect it. Check the unemployment level in the area the job is coming from so you can see if that area is viable or not. There are pockets of NSW with high unemployment. This has put me off dealing with country people.

Created: 7 June 2008 23:04
Last Updated: 19 May 2015 5:08

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