How To Recover Personal Debts Owed To You
If someone owes you money and is not paying you back, you could find yourself in the debt collection business. While there are a number of companies or an Auckland debt recovery lawyer who can help you recover any personal debt owed to you, there are some steps that you can take yourself. Working through these steps will help you get your money and remain as cordial as possible.
Determine Your Debt Situation
Before you look at how to recover the debt owed to you, you need to consider the situation. The first step in this will be to consider the agreement you had with your debtor. Do you have an agreement where the terms of the debt are laid out? This does not have to be a signed contract, but it does have to be something that shows you provided a loan or service to the person and they were going to pay you back.
If you have an enforceable contract, you need to consider if there is a compromise. You should consider what you can give to make it easier for the other person to pay the debt. Of course, a compromise is not always possible and you will need to start the debt collection process.
Remind Them Of The Debt
The very first step of any debt collection process will be to remind the person of the debt they owe you. When you do this, you need to be specific about the amount they owe and the dates they agreed to. During this communication, you should ask if you have these details right or if you have made any mistakes.
This step can result in 3 potential outcomes. The first is that they will pay you the debt they own, but this is unlikely. The second is that they agree with you and recommit to paying the debt. In this case, you need them to sign a letter of understanding which is a binding legal document. The last possibility is that they try to change the debt saying you gave it as a gift or an investment.
Send A Letter
If you have not received your money, you need to send them a letter. In the letter, you will need to outline the date of the incurred debt, the amount owed and any other facts regarding this. The repayment terms which were agreed upon will also need to be outlined. In the letter, you also need to state how you expect to be paid, when you expect this and if repayment in installments is acceptable.
It is important that you do not get emotional in this letter. Keep is factual and dry. You need to be very specific and brief without any anecdotes or personal feelings about this. The letter should be sent certified and you need to ask for a response within 10 days of receipt.
Hire A Debt Recovery Lawyer
If these steps fail, you will need to hire a lawyer to help you recover the debt. They will need to send a letter to the debtor and will be able to take your case to court if necessary. Hiring a lawyer is always your last resort and you should not jump straight to this.
Recovering a personal debt can be an emotional time, but you need to remain detached. Becoming emotional will hurt your chances of recovering the money. You must take the right steps when doing this to ensure success.
If you need an Auckland debt recovery lawyer, McVeagh Fleming has a good team of lawyers who can help in this regards.