How to go Through the Legal Process to Collect Debts

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We,here at Debt Recoveries Australia, are getting a lot of questions from companies who want to start legal proceedings but don’t know how? This is why our partner, ADC Legal Litigation Lawyers, is recommended, a “one-stop shop” for debt recovery and litigation in Australia. 

Here’s a breakdown of what ADC Legal- Litigation Lawyers does, as well as the debt collection and legal action process. 

Step 1: Collecting debt 

When considering legal action, ensure that a trained and professional debt collector contacts your debtor after the debt is placed with the agency, Debt Recoveries Australia. Unpaid debts cost every business and corporation money. This has a negative impact on the bottom line and cash flow, so getting paid in full is our top priority. 

Once the debt is assigned to Debt Recoveries Australia, there will be an effort to collect it on a “no win-no fee” basis. This means, no fee if unsuccessful. The charge for a small commission on the amount recovered when successful. This has proven to be a highly effective business model for credit managers in recovering seemingly unrecoverable debts. Furthermore, it is only required to pay when collected. 

Step 2: Legal action 

If debt collection efforts fail and we have exhausted all other options for recovery, it is suggested to take legal action as a last resort. As an example, suppose there is a demand for payment from a debtor who is ignoring the agency. It will then be determined whether it is cost effective to pursue them legally by using various databases to determine where they live and what assets they have. It’ll be suggested to take legal action against the debtor via our legal arm, ADC Legal Litigation Lawyers. 

A small claim action can be filed against a sole proprietor, a corporation, a partnership, or an individual. Starting with a legal demand letter is best. 

Quite often, letters of demand on the official ADC Legal letter-head will result in payment, at a low cost. When dealing with a difficult debtor, staff can persistently pursue payment through phone calls, emails, or by arranging a visit from one of field agents. We believe that debts should be recovered without the use of the courts whenever possible. 

It is understandable how important it is to eliminate outstanding debts in order to improve cash flow and profit. The goal is to ensure that the debt does not jeopardise company’s productivity and overall efficiency. Keeping costs in mind, helps provide an innovative fixed fee debt recovery service so that you can budget for the cost of recovering debts. Equally important, choosing the most proactive debt collection method in order to obtain payment as quickly and cheaply as possible. 

Each step of the debt recovery process has an associated cost. Except for the cost of the Letter of Demand and Garnishee Order, most of these expenses can be recovered from the debtor. We can even add interest to the debt and charge it to the debtor. It is not guaranteed that the debtor will be financially secure and able to pay these costs at the end of the process, if the debt is successfully recovered, the only cost to will be for the Letter of Demand & Garnishee Order. 

Lots to think about so call us for a free consultation to discuss this further. 

Have been you thinking about outsourcing some of your insurance claim recovery? Please contact Debt Recoveries Australia at, 1300 799 511, or debtrecoveries on Skype if you have any questions about closed claims audits or our services in general. 

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