Debt Collection and Recovery

When one person goes to the trouble of doing work or performing services for another, in circumstances contemplating payment, that person understandably wants to be paid on time. When payment is not made when due you will almost certainly feel aggrieved because you have after all done what you were supposed to do yet the other person failed to honour the arrangement or deal.

Debt collection and its recovery is like many other things a legal process. It usually starts with some form of negotiation (alternative dispute resolution) and then if payment is not made it escalates to a threat of legal proceedings and perhaps even an actual court hearing. Most matters resolve by agreement but some matters do not and those cases often go to trial. It is always important for creditors to think really hard about whether or not a debtor can pay the debt since it would be a pyrrhic victory to get judgement against someone who has no money to pay.

Essentially then debt collection then is "getting paid" for work done or services provided usually under a contract. In some cases there are practical difficulties such as proving the contract and for that you may need legal advice from a debt collection lawyer. If you are a creditor (owed money) who needs legal help pursuing a substantial debt then contact our lawyers to discuss your options. Alternatively, if you are a debtor who has solid legal grounds for disputing a debt (and you can afford to pay your lawyers upfront) then see us about your options for contesting that debt.

Let Us Help You:-

• Put your case together by collecting all documents evidencing the existence of the debt, documents showing the payments that have been made to date and indicating any security offered;
• Clearly articulate the amount of the debt and interest by in appropriate cases getting assistance from suitably qualified accountants;
• Dot the i's and cross the t's with respect to checking that the debt is in fact due and owing since in some cases payment is only due after a certain number of days have elapsed from the invoice date;
• Consider the impact of any guarantees offered and looking at compliance with preliminary steps for enforcing the guarantee;
• Draft the letter of demand and perhaps also a Calderbank Offer to try and set the debtor up for indemnity costs;
• Understand early on that even if you get judgement against a debtor you may still need to enforce it by way of separate proceedings to get paid and that there is always a risk that there are no assets to satisfy the debt.
• If you are a debtor, in appropriate cases, raise issues about: the quality of the goods or services delivered, notify the creditor if goods were not delivered, raise issues about incorrectly calculating the debt or set off [see: s 21 of the Civil Procedure Act];
• By assisting you with pre-trial matters such as: preliminary discovery, and freezing orders;
• State the nature of your case by way of pleadings and after the pleadings are prepared arrange for service.