• Commercial Law

    Commercial Law

    We are business people as much as we are lawyers. We will take care of the legal documents so you can confidently run your business.
    As your business grows, its risk profile and governance challenges will change. We partner with our clients over the long term to ensure they are in the driver’s seat for success.

  • Dispute Resolution

    Dispute Resolution

    We are in your corner when the going gets tough. Having resolved over 6,500 disputes for business owners have seen it all before.

    Whether you need a skilled negotiator or a fearless litigator, we specialise in delivering commercial results when:

    Customers refuse to pay;
    Suppliers let you down; and
    Business Partners do the wrong thing.

  • Employment & Safety

    Employment & Safety

    The biggest challenge for any business owner, is managing their employees.

    A difficult employee can make you question why you got into business in the first place and be toxic to your team morale.

    We deliver proactive solutions to manage your team via employment contracts, policies and procedures as well as handling employment disputes when they arise.

  • Property & Construction

    Property & Construction

    Property is the key most wealth in Australia.  Whether you are buying, selling, leasing or developing property, you need a lawyer you can count on.

    We can advise on the whole property development process from obtaining finance to development approvals, construction and sale or leasing.

    We also act for the Master Builders Victoria and have extensive expertise in construction contracts and disputes.

  • Family Law

    Family Law

    At Taurus Legal Management we understand the unique challenges clients encounter during family disputes, especially when children are involved. Our family lawyers specialise in handling high-asset cases with a focus on protecting clients wealth, securing their family’s future, and safeguarding the best interests of their children.


If I Receive A Letter of Demand, Do I Have To Pay?

Usually, a creditor will send a letter of demand if there is an outstanding debt. However, not all letters of demand are created equal.

Depending on the circumstances of the letter and the facts of your individual case, it might be hard to know whether the amount of the debt is correct, whether the debt is disputed, what the basis of the debt is, and indeed, whether you owe it at all. You may not even have to pay it.

Accepting the Debt

If you accept responsibility for the debt, you should pay it.

If you accept the debt but you do not have the means to pay the debt, you can negotiate with the other side. You may be able to reach agreement on paying a lesser sum of money or the full amount over time. This is only an option if the other side agrees as there is no legal requirement that they negotiate with you.

Additional Fees

Sometimes, letters of demand will also request additional fees or costs over and above the unpaid debt.  As a general rule, legal costs or fees can only be claimed under a contract or once legal proceedings are issued.

Be sure to go back through the contract and check if legal fees or charges are included. If not, you can dispute these charges.

Disputing the Debt

If you dispute the debt, you can either not respond to the demand or put the other side on notice of your position. Selecting an option will depend on your circumstances.

As a guide, it is preferable to respond to the demand where you believe that the other side will take the next step of issuing legal proceedings. Your response may deter them from issuing legal proceedings or encourage them to negotiate instead. These will potentially save you some legal costs.


Our top tips for dealing with a demand is –

  1. To remember that you are usually not required to pay a debt that has been in default for more than 6 years;
  2. There are debt recovery rules which lawyers and agents must follow. You may be able to make a complaint if you are being persistently contacted;
  3. There is no time limit on putting forward an offer of settlement;
  4. Consider whether it is worth paying the debt promptly where you will have an ongoing relationship with the other side.

If you receive a letter of demand, we recommend you contact a member of our experienced dispute resolution team at Taurus Legal Management for advice on (03) 9481 2000 or info@tauruslawyers.com.au.

Posted by Taurus Legal Management