Debt Disputes & Debt Recovery
We are experienced in debt disputes and the recovery of debts. Contact one of our debt dispute lawyers and debt recovery lawyers for a consultation.
Debt disputes can occur in a variety of ways. For example, if you run a business the chances are that one day you will not get paid for the goods or services that you have provided. Such an event can cause serious issues to the cash-flow of a business and even threaten its viability. Another instance where debt disputes may arise is if you are a consumer who has entered into a loan or agreed to purchase goods or services. You may now find yourself in a position where you cannot afford to pay the loan repayments or for the goods or services you had originally intended to purchase.
The process for resolving a debt dispute usually commences by reviewing the relevant documentation which has created the obligation for one party to pay a sum of money to another party. If this has been properly drafted in writing, this hurdle is usually easily overcome. However, there can be instances where agreements are made verbally. This can cause issues as one party’s recollection of the agreement may differ from the other.
Assuming there is an agreement and a debt is owed, the next step is, usually, to draft a letter of demand to the debtor. This is a formal letter which will outline the background to the matter, an explanation of the obligation which forms the basis of the debt, when or how the breach occurred and a demand to pay the debt back within a certain period of time. If you are a debtor and have received a letter of demand, it is crucial that you speak with a lawyer to obtain legal advice as soon as possible as a failure to respond can have serious consequences.
Frequently, it is after a letter of demand has been sent (or received, as the case may be) that the parties begin to negotiate. Quite often the debtor will have a reason or reasons as to why the money has not been paid, such as the goods being faulty or the services not being performed with due care and skill. Depending on the specific circumstances of the matter, negotiations can drag out for some time. In any event, it is advisable that advice be sought from a lawyer experienced in debt disputes and recovery so that you understand the strengths and weaknesses of your case. If the parties prove willing to compromise, often a commercially sensible outcome can be reached which will be satisfactory for all involved. Successful negotiations will usually result in the parties signing a Deed of Settlement which will stipulate the terms of the agreement that was reached.
In the event the parties cannot negotiate a mutually satisfactory resolution to the matter, the creditor may resort to commencing court proceedings. Whilst this is usually a means of last resort, a creditor may feel they are in a strong position to obtain a more favourable amount in court than what is being offered by the debtor. Should you wish to commence court proceedings or have been served with a Statement of Claim, it is crucial that you obtain legal advice from a lawyer experienced in debt disputes and recovery as soon as possible.
Debt disputes and recovery require a lawyer familiar with the relevant legislation and the common law. Our lawyers have acted for many clients involved in debt disputes and recovery have the experience and drive to help you resolve the dispute. Lawyers are forbidden from charging commission, unlike other service providers like debt recovery agencies. This means that by proceeding with a lawyer you can be confident about what you will be charged right from the beginning. Contact the team at Pagin + Mak Lawyers for a free first initial phone consultation. We are more than happy to discuss any questions you may have and explain the process in greater detail.
Disclaimer:
The information above is intended as general information only and should not be relied on. You should discuss your individual situation with a lawyer.
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