How much does it cost to recover a debt?
The first question most business owners ask about an unpaid invoice is: what will it cost me to chase it? The honest answer has three parts: our legal fees, court and other disbursements, and what you can recover back from the debtor if the claim succeeds.
At O'Haire Legal we charge debt recovery work on a staged fixed fee basis, so you know the cost of each step before we take it. This guide sets out the typical costs for a claim in the Magistrates' Court of Victoria. Figures exclude GST unless stated and are a guide only. We give every client a written quote before work starts.
1. Our legal fees: staged and fixed
A debt recovery claim runs in stages. You pay the fixed fee for each stage as it is carried out, whatever the outcome.
Stage
What it involves
Fee (excl. GST)
Letter of demand
A formal written demand to the debtor for payment
$132.00
Complaint
Preparing and filing the complaint in the Magistrates' Court if the debt remains unpaid
$500.00
Service
Serving the complaint on the debtor, including the affidavit of service
$250.00
Default judgment
Applying for judgment if the debtor does not file a defence
$400.00
If the debtor's current address is not known, we can engage a skip tracer to locate them for a further fixed fee.
Enforcement: only if the judgment is not paid
Winning a judgment does not always mean being paid. If the debtor does not pay, we recommend the most suitable enforcement method for their circumstances. Each carries its own fixed fee, and you pay only for the method you use.
Enforcement method
Fee (excl. GST)
Oral examination - $200.00
Warrant to seize property - $250.00
Warrant of delivery - $200.00
Garnishee order - $200.00
Attachment of earnings - $400.00
Service of enforcement orders (if needed) - $200.00
Why a staged fixed fee?
Certainty. You know each stage's fee before we start, with no hourly-rate surprises.
Control. You pay only for the stage being carried out and can stop at any point, for example if the debtor pays.
No wasted cost. Enforcement is only charged if the judgment remains unpaid.
Easy budgeting. You can see the whole pathway and the likely total in one document.
2. Court fees and other disbursements
Disbursements are expenses we pay on your behalf. They are separate from our fees and are payable whether or not the debt is recovered.
Magistrates' Court filing fee
The filing fee depends on the size of the claim and on whether you are treated as a standard or a corporate fee payer. These figures are from the Magistrates' Court Civil Fees and Costs Ready Reckoner effective 1 July 2026.
The Court charges businesses with a turnover above a set threshold the corporate rate. We will confirm which rate applies to you.
Other likely disbursements
Application for order (default judgment): $51.80 (standard) or $103.60 (corporate).
Service by a process server: typically around $250 to $400, depending on location.
Company search of the debtor: about $40.
Enforcement disbursements (only if needed)
Oral examination: $120.90 (standard) or $241.80 (corporate).
Warrant to seize property or of delivery: issue fee of $20.70 (standard) or $41.40 (corporate), plus the sheriff's fee of $236.80.
Attachment of earnings: application fee of $172.70 (standard) or $345.40 (corporate), plus $24.20 for the order.
3. What you can recover from the debtor
The good news is that if you win, the Court can order the debtor to pay part of your costs. These are set by the Magistrates' Court professional costs scale, not by what you pay us. For a claim of $7,500 to less than $20,000, the main scale items for an undefended claim are:
Scale item
Complaint - $850.00
Service - $91.00
Application for order - $57.00
Necessary affidavit - $372.00
Total - $1,370.00
On top of that, you can ask for your Court filing and application fees to be repaid. Costs are only recovered if the debtor actually pays, and the Court may allow less than you claim.
What affects the cost?
The size of the claim. It sets the Court filing fee.
Whether the debtor responds. An undefended claim costs far less than a defended one. If the debtor files a defence, we will quote the next steps separately.
Locating and serving the debtor. An unknown address or a hard-to-find debtor adds cost.
Whether enforcement is needed. Many debtors pay once judgment is entered. Some do not.
Whether you are a standard or corporate fee payer. This changes Court fees.
Frequently asked questions
How much does it cost to recover a debt in Victoria? Our fees for an undefended claim from complaint to default judgment are $1,150 plus GST, plus Court fees and other disbursements that depend on the size of the claim. Much of that can be recovered from the debtor if they pay.
Do I pay if the debt is not recovered? Yes. Fees are fixed for each stage and are payable as the work is done, whatever the outcome, and disbursements are payable either way.
What is the Magistrates' Court filing fee for a debt claim? It depends on the claim amount and whether you are a standard or corporate payer. For a claim over $10,000 and under $20,000 it is $559.50 (standard) or $1,119.10 (corporate).
Can I get my legal costs back from the debtor? Part of them. The Court can order costs under a fixed scale, plus repayment of your Court fees. You only recover them if the debtor pays.
Do you give a quote before starting? Yes. We provide a written quote and costs disclosure before work begins.
Get a debt recovery quote
If you have an unpaid invoice, contact O'Haire Legal for a fixed-fee quote. Send us the invoice, the debtor's details and any reminders already sent, and we will set out the costs for each stage.
O'Haire Legal 5/21 View Point, Bendigo VIC 3550 (03) 7064 0341 home@ohairelegal.com.au
This article is general information only and is not legal advice. Fees and Court costs change and every matter is different. Figures are a guide only.
