Debt Collection
4. Information for Creditors
Firm / Chambers:
Last updated: 17 Jul 2015
- The real art in debt recovery is how you choose to deal with debtors once you have demanded payment.
- There are generally two types of debtors:
- the person who simply ignores the creditor. This is often related to embarrassment rather than a desire not to pay; and
- the person who tries to delay or avoid paying. These are the most difficult debtors to deal with.
- An experienced lawyer will quickly recognise what sort of person you are dealing with and will have learned to respond according to their circumstances. The type of debtor does have some bearing on the manner in which to deal with them.
- A debtor who has ignored your requests for payment out of embarrassment will often be a case of genuine financial hardship. You should try to work through this issue with them to ensure a positive outcome for all concerned.
- If you are sure that a debtor is simply trying to stall or avoid payment without good reason you should proceed firmly and promptly with legal proceedings. Such people are often well versed in court procedures and unless you are proactive you may find your debt recovery action becomes badly stalled.
- Any correspondence from a debtor must be responded to. You should try to respond quickly as it is important to maintain momentum in any debt recovery action.
- Telephone calls to or from debtors are always interesting. Many of the people you come across in this situation will be pleasant and willing to work with you to achieve an outcome that is mutually satisfactory to all parties. Others may be extremely difficult to deal with.
- You should always remain calm and polite no matter who you are talking to. If you find yourself getting upset or angry you should end the call and consider engaging a lawyer or asking someone else in your organisation to talk to them.
- The way you deal with difficult debtors may become problematic and complicate your debt collection issue.
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