In the current economic climate, the instances of individuals and companies failing to pay their debts is increasing. When a debtor fails to pay a debt to you on the agreed terms, the debt becomes delinquent or in default.
Why do people default? Either because they are unable or are unwilling to pay their debt. Regardless of the reason, we can assist with legal recovery of debts owed to you or your business.
To influence the debtor to pay the debt or to recover the debt owed to you we can take the following legal steps:
- Issue a Letter of Demand on law firm letterhead. This adds weight and demonstrates you are serious about recovering the debt.
- If the debtor fails to respond to our Letter of Demand, we commence a debt recovery proceeding in the court. We can claim interest on the debt and ask the court to grant legal costs against the debtor.
- We can support you in obtaining a judgement which is enforceable against the debtor. Avoiding a judgement is a strong deterrent and provides an incentive for the debtor to pay because of the lasting effect on their credit history.
- If the debtor continues to avoid payment, we can apply to the court to have the debtor’s financial details disclosed, have their wages redirected and to take a security over any property owned by the debtor.
Depending on the jurisdiction, you can make a debt claim up to 6 years after the debt became due. Once you obtain a judgement, the judgement can be enforced for 12 years after the judgement has been obtained.
Disclaimer: This article is for general understanding and should not be used as a substitute for professional legal advice. Any reliance on the information is strictly at the user's risk, and there is no intention to create a lawyer-client relationship from this general communication.
