Debt Collection And The Legal Process Involved
When it comes to debt collection, debtor and the collection agency both wish to avoid involvement of any legal process as this is not only time taking but also expensive. However, in cases when the debtor is non-cooperating and adamant, traditional collection efforts may not yield any fruitful results. In such circumstances, best way to deal with the issue would be to involve an attorney, lawyer, or solicitor.
The debt collection legal process is resorted to when it is not possible to recover the debt through traditional methods - phone calls or written reminders sent to the debtor. In such cases, debtors will only respond when the legal process involved in a debt collection procedure.
To begin with, the early stage of legal action involves issuing a statement of claim. If the matter remains undefended then you will be able to progress for the default judgment generally after 28 days (may vary according to the legal process followed in different countries).
This stage leads to the enforcement and recovery actions related to garnishee of wages and re-possession of property. Finally, if the non-payer company or person has become bankrupt, the final step in the process is to pursue the bankruptcy proceedings or winding up in case of a company.
The legal process involved for debt collection is usually quite expensive and always the wise thing to do as it involves lawyer’s fees etc. Thus, it is recommended that you first try out all the traditional methods available to recoup the unpaid amount from the debtors. After all the methods have been exhausted and there’s no other means left, you can seek legal help to track down the debtor and settle the deal.