Owe or Owed? Top 5 Tips for Debt Recovery Issues
Here are some useful tips on how to manage a debt dispute.
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 proper parties?
Due diligence on your part will ensure that you can provide as much detail as possible.
2. Substantiate the details
Knowing all the details is only one part of the process; you must also be able to prove the details. How did the debt come about? Evidence of a contract between the relevant parties, whether it be written or verbal, is generally the best way of detailing the debt , how it came about and the correct parties involved. This could 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 how you want to achieve it. “Principles” are only one factor to consider when deciding to commence debt recovery action or deciding to defend a claim.
You need to consider the commercial viability of commencing legal action to recover a debt or defending such action.
There is no use throwing good money after bad. 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 sum in dispute. 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 The success of your matter is largely dependent on your preparedness. Generally the more work you put in at the start the better the outcome.
5. Get good advice
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.Back