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TOP TIPS FOR RECOVERING DEBT - PART TWO

#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 debt.

#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 circumstances.

#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 PAID!

We can assist you in pursuing your debtors. Call us today to discuss how we can help.

Written by Kylie van Heerden, Rebecca Catley at 09:00

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