Date published: 6 May 2026 | Author: Nina Rossi

Unpaid invoices can quickly disrupt cash flow, delay wages and stall growth. Many businesses wait too long before taking action, but there are clear legal steps you can use to recover a debt when reminders are ignored.

Debt recovery in NSW, at least, though this varies between states, sits within a structured legal framework. The right approach depends on the size of the debt, whether the work is disputed and how long the invoice has been outstanding. A simple unpaid invoice may be resolved with a formal Letter of Demand, while more complex disputes can move through the Local Court, District Court or Supreme Court. In some cases, the NSW Civil and Administrative Tribunal (NCAT) can deal with claims up to certain limits. If a court orders payment, there are enforcement options such as garnishing wages, seizing property, or, in serious cases, initiating bankruptcy or insolvency proceedings.

The key message for business owners is that you can take action against ongoing non-payment. The law provides structured pathways to recover what you are owed, but timing and documentation matter.

What you should think about

• Whether you have a clear written contract or scope of work
• Whether your invoices, emails and delivery records support your claim
• Whether a Letter of Demand is appropriate before escalating
• Whether the debt is disputed, and what evidence you may need
• Whether the debtor has assets or the capacity to pay
• Whether you are approaching the six-year limitation period for recovery

You’re in control when you understand your legal position. Contact Rossi Law today to get the clarity and advice you need to move forward.