#6 Consider what you want to achieve
Debt collection can turn into a situation of spending good money
in pursuit of bad. Careful consideration of the outcome you want to
achieve will assist you to decide the way you go about pursuing the
#7 Think about how much you want to spend
Take time to carry out a proper assessment about how much you want
to spend pursuing the debt. There are a number of options which are
cost effective, and appropriate depending on the
#8 Pick the option that suits best
Enforcing retention of title or lien clauses can sometimes be a
more cost effective way of enabling you to collect the debt. The
Disputes Tribunal is also a useful avenue, however it is only
suitable for where the debt is disputed, and is less than $15,000.
In the case of a company, there is the option to issue a statutory
demand, however this is only where the debt is undisputed, and you
are seeking to put the company into liquidation.
You should take care before pursuing this option, as it does not
necessarily result in getting you back what you are owed. If you
pursue the debt in the Courts, you can obtain a charging order over
property of the debtor or an attachment order which requires the
debtor's employer to pay you from the debtor's wages or benefit
until the debt is paid in full.
#9 Know your time limits
The rules of limitation restrict a creditor to having only six
years to recover a debt. This time period commences from the day
the debt is 'owed.' Time starts running again if the debtor makes
an acknowledgment of the debt, or makes a part payment, in which
case the six year period will commence from the date of
acknowledgement or the last date of part payment.
#10 Talk to ST about pursuing debtors…and get
We can assist you in pursuing your debtors. Call us today to
discuss how we can help.