Debt Recovery 101
We asked Timothy North, Solicitor – Commercial at Simmons Wolfhagen Lawyers, to provide some insight into debt recovery and in particular the role that Simmons Wolfhagen Lawyers can play in effectively recovering your debts.
Unfortunately, in the world of business there is going to be situations whereby a client or provider owes you money. To ensure that you maximise the potential for a positive outcome in respect of the amount owed, you should consider some initial avenues to try and resolve the debt before seeking professional guidance.
- It is vital that you keep comprehensive records of any contracts, invoices, emails, text messages, bank records or any other documents that evidence what is owed to you. The more information you have in relation the circumstances of the debt you are owed, the more likely you will be able to successfully recover the debt.
- Also ensure that you are across timeframes. The maximum time in which you can bring an action to recover a debt in Tasmania is six years.
- When you intend to recover a debt, you should engage in respectful and direct negotiations with the debtor. This may include a face-to-face discussion, informal notifications of the debt and a letter requesting payment. It is important to be reasonable and to also have an open mind as to the ability of the debtor to pay and any other mechanisms of which can be undertaken to resolve the debt such as payment plans.
How can Simmons Wolfhagen Lawyers help?
Simmons Wolfhagen Lawyers can assist you in identifying the legal basis of the recovery of your debt. This will include reviewing the material and advising of your prospects of success.
We can also draft and send a letter of demand on your behalf. This demands the debtor to repay the owing money and if that is not paid (usually within seven days), that you will be commencing proceedings to recover the debt.
Simmons Wolfhagen Lawyers can also assist in the commencement and ongoing conduct of debt recovery matters and assist to negotiate a favourable outcome.
This overview provides a very brief summary of how-to best deal with debt recovery matters and how Simmons Wolfhagen Lawyers can assist in recovering these debts.
If you need expert legal advice on this issue, please contact our Launceston or Scottsdale office Commercial team on 03 6338 2390 or Timothy North directly by email: [email protected]. Alternatively, contact our Hobart or Kingston Office Commercial team on 03 6226 1200.
Visit our website for more information and an overview of our Commercial securities enforcement, debt recovery and insolvency capabilities.
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