Why should hire a firm that specializes in tenancy debt collection in Australia when you can initiate legal action and approach the court instead? Well, many persons make the mistake of thinking that the court is an alternative to hiring a professional debt collection firm.

The truth is that the collection agency does not perform the duties of a court and getting court order does not mean that you will automatically receive the amount owed to you.

The function of a court is to adjudicate upon legal disputes related to an established law. If you have a written agreement with your tenant that lays down a clear contractual obligation to pay your rent, then your legal position is absolutely clear.

Fighting a case against your tenant in a court of law will be a simple and straightforward affair. The court will, after going through your contract, order the tenant to pay his or her dues. However, the court is not going to go out and collect the debt for you. Once you have the court order in hand, you will still have to execute the same and collect the debt from the tenant.

The only difference here is that you will a confirmation from a court that you are indeed eligible to collect the rent. If the tenant refuses to clear the debt due to financial or other problems, then merely having court order in your hand will not simplify matters.

You can initiate contempt action or can approach the court again to help you execute the decree. However, keep in mind that the authorities will follow their own detailed procedure, which may not suit your immediate requirements. The last thing you may want is for the tenancy debt to end up as a long-term transaction that requires years of follow-up for resolution.

This is where working with a firm specializing in recovery of tenancy debt in Australia can make a huge difference. Instead of coming good on your threat of legal action, you can use debt collectors to convey that the next step that you plan on initiating would definitely involve the authorities. Further, debt collectors can create a negotiated settlement where you choose to forgo part of your date in order to collect the remainder.

So, don’t make the mistake of presuming that filing a case in the court is better than approaching a debt collection agency. The latter offers direct assistance, negotiates with the tenant, and improves your chances of recovering a significant portion of the debt owed. The former may leave you with a stamped order certifying your right to recover the money without bringing you any closer to actual recovery of the debt.