Owe or Owed? Top 6 Tips for Debt Recovery Issues
Whether you owe the debt or are owed the debt, we are here to help you with your debt management and recovery issues. Here are some useful tips on how to go about approaching your debt recovery issues.
1. Know the details
First and foremost it is crucial to know the details of your issue, what you need help with, what you want to achieve and ideas about how you will achieve it. Important details may include, but are not limited to:
- How much is the outstanding debt?
- How did the debt come about?
- Is there a written contract?
- Who are the Parties?
- What are their names?
- Where do they live or conduct their business?
Due diligence on your part will ensure that you can provide us with as much detail as possible in order to help solve your problem/s quickly and efficiently.
2. Substantiate the details
Knowing all the details is only one part of the process; you must also be able to prove the details. Proving the details includes, but is not limited to, providing us with evidence to show that a debt exists, how it came about and identify the correct parties involved. Evidence of a contract between the Parties, whether it be written or verbal, is the best way to show that a debt exists, how it came about and the correct parties involved. Evidence may be in the form of an executed contract, some form of written agreement, correspondence, receipts/invoices, transaction records and the like.
3. Think commercially
It is important for you to know what you want to achieve and have ideas on how you will achieve it. In going about such a task, it is vital for you to understand that your “principles” are only one factor which needs to be considered when deciding to commence debt recovery action or deciding to defend against it. Indeed, principles are not always the most relevant factor.
We always urge our clients, depending on their particular circumstances, to think commercially. This means, among many other things, to consider the commercial viability of commencing legal action to recover a debt or defend against such action.
We maintain that it is not best practice to throw good money after bad, particularly if at the end of the day you will be spending an equal or even at times, a greater amount of good money, to recover the debt. Litigation is a very risky avenue to pursue. It can be very time consuming, stressful and costly. You must think carefully about the real possibility that the money you put in may well outweigh the money you ultimately attain from the proceedings. It may be the case that the best commercial outcome would be to settle the issue amicably with the other Party outside of Court. Alternatively, it may be the case that the best solution is to simply pay the debt or simply cease from pursuing it altogether.
4. Be practical and open minded
It is very important to be realistic, practical and open minded in your approach. We do not always have a magic solution or a quick fix to your problem/s, and we certainly cannot read our clients’ minds. You have to understand that the success of your matter is largely dependent on your preparedness and the instructions you provide us. The more detailed your instructions the better. Therefore, when providing instructions you must ensure that you do so clearly and practically. Keep an open mind and have realistic expectations. Implementing such strategies will ensure that you are flexible and achieve the best result in your circumstances.
5. Take the initiative
Make sure you utilise our services as effectively as possible by being prepared. It may be as simple as preparing set questions that you want answered at a meeting, making sure you know all the facts of your case, or drafting your own factual chronology. Efforts like this ensure that your matter progresses efficiently, which also keeps your legal costs to a minimum. The more work you do, the less we have to do and hence the less you are charged.
6. Get well informed
It is always worthwhile to seek professional legal advice in order to work out the best course of action for your situation. The reality is that each matter is different and unfortunately there is no generic piece of advice or universal approach. The most prudent course of action is to seek and take advantage of quality legal services and take the time to understand the various legal options available to you and the legal processes involved in your situation. Only then can you make an informed decision that best suits you.
If you want to get well informed in relation to your debt recovery issue, please do not hesitate to contact us so that we can assist you reach your desired solution.
Stay tuned for our top tips to help avoid bad debts.