Debt Recovery Lawyers
As business owners, we tend to put off the tough decisions. And high on that list is debt recovery. It’s uncomfortable, time-consuming and if not dealt with, can be financially crippling. Our recommendation? Take a step, any step towards dealing with the issue. By this, we don’t just mean continuing to send out statements of account but addressing the elephant in the room.
Steps in Debt Recovery
- Send Invoice
Send your invoice to the debtor as per normal, ensuring it contains all relevant information including:
- Your contact information.
- A clear description of services being charged for, and amount charged.
- Payment terms & conditions.
- Due date.
- Correct references.
- Send an Overdue Invoice Reminder & Make Direct Contact (If Possible)
If the debtor hasn’t paid, passed the due date listed on the invoice this is when you should begin the process of chasing up the invoice.
We recommend sending an email reminder, and call them to follow up this invoice, as it is past the due date otherwise the situation may escalate. (Ensure you keep note of when you sent the email and called them).
- Send Final Payment Notice
Send a final payment notice to the debtor, advising them if payment is not made further legal action will be taken.
- Seek Legal Advice & Letter of Demand
At this stage it is recommended that you seek legal advice and send the debtor a letter of demand. The letter of demand is the last piece of correspondence to be sent to the debtor before legal proceedings begin.
The letter outlines that they have a deadline to settle the debt before legal action is taken against them for the money owed. You can provide your own deadline in this letter; however, the Court expects the debtor to be given a reasonable period which is thought to be at least 30 days for an individual to either settle the debt or respond to the letter.
- Begin Legal Proceedings
Your last resort will be to begin legal action towards the debtor.
What can PD Law Help You With?
Our team can assist you with the following:
- Providing you with expert advice and taking your instructions
- Reviewing all relevant material & correspondence
- Drafting letter of demand to the debtor outlining facts, breach of any agreement, the law and how the matter is to be resolved
- Advice on your options & next steps shall the debtor not respond or rectify the issue
- Court proceedings
If you require assistance with a debt recovery or dispute matter, contact our commercial team today to begin the process.
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