Running a business is filled with challenges and complexities of all kinds, and collecting debt is one of the most persistent difficulties. Small businesses are especially vulnerable to unpaid debt. If you’re like most small business owners, you need financing to keep your operations going. You have your own repayment schedule that must be adhered to, so it’s imperative that you collect what is owed to you by clients. Continue reading to learn how debt recovery lawyers in Melbourne can help you.
Why You Should Hire a Lawyer
The first step in debt collection should be taken by your team. Sending an email reminder and then a written notice of the outstanding balance can sometimes be an effective way of getting people to pay up. You’ll only need to turn to a lawyer when confronted with individuals or companies who refuse to acknowledge their debt. As your business grows, the number of such delinquencies is sure to increase. Over time, it will become impossible for your management and operations team to handle each case individually.
This is where debt recovery lawyers in Melbourne can provide assistance. Instead of trying to manage such matters on your own, you can let someone else take care of it. This also means youcan avoid bullying and intimidating your clients. Sending threatening letters and making aggressive phone calls isn’tjust ineffective and counterproductive, but in some cases can expose you to legal liability. It’s always better to let a professional handle thesematters.
The Debt Recovery Process
Debt recovery lawyers can assist throughout the debt recovery process, which unfolds through a series of stages. These stages include:
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Letter to debtor − Once you’ve exhausted the option of reminders to the debtor, the next step is to advise them of your company’s legal right to take action against them. Your lawyer will send them a letter advising them of your intention to initiate court proceedings.
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Issuing a statutory demand against your debtor − If the debtor still refuses to contact you to arrange a re-payment plan, your lawyer will go through the process necessary to issue a claim or statutory demand against the debtor. This is a direct engagement with law enforcement and advises them of your intention to act against the debtor if necessary.
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Taking enforcement action − Enforcement comes in the form of a court order that compels the debtor to pay. In most cases, you will only be able to recover a debt in this way from another business.
Handling Legal Disputes
If a debtor disputes the amount owed to you and hires a lawyer, matters can become more complicated. The issue is no longer one of debt recovery but of contractual dispute. However, most debt recovery lawyers in Melbourne possess the knowledge, skill and expertise to deal with this.
The first thing your lawyer will do is determine the seriousness of the challenge. The dispute may be a ploy on the part of the debtor to stall for time, but you need not give into this. A dedicated and highly skilled debt recovery lawyer can help you get the money that’s owed to you.