A debt recovery lawyer ensures that debt recovery is done in a manner that is fair to all parties involved. Debt recovery lawyers in Perth do this via legal proceedings, which in practice is a more cost-effective approach than hiring a collection agency to do the job. Hiring debt recovery lawyers gives you a higher chance of retrieving the money you are owed, because they are capable of compelling debtors to settle if they wish to avoid legal actions.
Even though this method mostly puts the responsibility on your debt recovery lawyer, it is still beneficial for you to learn about the process so you can set proper expectations. Read on to learn more about debt recovery and the processes surrounding it.
What Is Debt Recovery?
Debt recovery is sometimes mistakenly called debt collection, but there is a clear difference between the two. The most important distinction between the two is the person trying to retrieve the unpaid debt. Debt collection is when a creditor attempts to recover funds that have not been paid back by a customer.
Debt recovery, on the other hand, is when a loan such as a credit card debt remains unpaid, prompting the lender to hire a third party to collect the money owed. The third party could either be a debt collection agency or debt recovery lawyers.
Why Is Debt Recovery Important?
If you are running a business, unpaid debts could affect your enterprise’s cash flow and depending on the amount owed, your operations. Recovering money is easier and more efficient when working with debt recovery lawyers as opposed to an agency, because lawyers can take legal action in the event the debtor fails to return the money owed.
For individuals and small businesses, small loans may be necessary to keep the business up and running. That is why it is highly important to hire a debt recovery team who can ensure that all unpaid loans are paid back as initially agreed before the funds are released to the debtor.
Most debt recovery lawyers provide clients with three options when it comes to debt recovery, namely:
• Letter of Demand
• Minor Case Claim (Magistrate Court)
• General Procedure Claim (Magistrate Court)
These methods are legal, and a civil way of resolving disputes. If the debt occurs between organisations, this is a great way of avoiding conflict and maintaining a good business relationship.
What Is the Process of Debt Recovery in Australia?
In general, there are four stages of debt recovery practised in Australia:
What Happens When a Bad Debt Is Recovered?
If the debtor pays you during the Statement of Claim stage, then there’s no need to go to court. Note that if the party that owes you money refuses to pay or respond, then the next step is to take them to court.
What Happens if You Ignore a Debt Collector?
Ignoring the debt collector will prompt them to find other ways to try to collect the debt, and that includes filing a lawsuit. If you are unable to settle your debt, find an attorney who can give you legal advice regarding your situation.
On your own, debt collection may prove to be highly difficult for you to manage. But with an experienced debt recovery lawyer at your side, you’re going to get all the support you need and be on your way to collecting the money you’re owed. If you need help with debt recovery, contact Hoe Lawyers for a free initial consultation today.
Recovering Your Debt Should Be Easy
Except it isn’t, at least not all the time. In times when retrieving money from debtors proves to be a challenge, consider hiring experienced and skilled debt recovery lawyers in Perth. Hoe Lawyers has debt recovery attorneys who can give you legal advice on how to make debtors pay. In the event that payment is not given in a timely manner, these same lawyers will assist you as you take legal action against your debtor.
Ideally, a settlement is achieved before the matter procees to Court. If going to Court is inevitable however you need to make sure you have an expert lawyer by your side. Contact us to schedule an initial consultation regarding your concerns.