December 5, 2022

Legal BUX

Law Blog

A Quick Guide to Debt Recovery without Stress

Debt recovery is no easy task, and even in the most favourable of circumstances, it can still be necessary to seek the help of debt recovery lawyers in Melbourne. Having an understanding of the process of debt recovery will go a long way to easing the stress of any ensuing legal proceedings. Here’s a short guide to recovering debt with minimal stress.

Contact the Debtor before Proceeding to Litigation

The stress of debt recovery can be significantly decreased if you opt to first contact the debtor rather than resort to immediate legal action. Debt recovery lawyers in Melbourne can act on your behalf and take steps to resolve the issue without it proceeding to litigation in court. 

Debt recovery lawyers will attempt to make contact with the debtor via various methods. For instance, lawyers will usually send the debtor a letter of demand that outlines exactly how much is owed and the best way for them to make payment. In addition to a letter, debt recovery lawyers may also attempt to make contact via a phone call. The idea is that the call will add a sense of urgency to the debtor and encourage a faster response. 

Using a lawyer or law firm rather than a debt collection agency is generally recommended, as debt recovery lawyers employ a less aggressive communication style and approach communication with finesse and nuance, which can be more encouraging for debtors. 

If Contact Methods Fail, A Formal Complaint is Issued

The issuing of a complaint will officially commence legal proceedings. While this may seem like a stressful way to proceed, sometimes there aren’t many other options to get your money. However, with the help of debt recovery lawyers in Melbourne, the ensuing legal proceedings will go a lot more smoothly than you might think. 

Working with debt recovery lawyers will take a lot of the confusion out of legal proceedings, as your lawyer will be able to present facts and legal reasons that will support your claim against the debtor. They’ll also be able to refer your case to the right court division, further taking the guesswork out of where you’re meant to be and why. 

Once Litigation Has Ended, Payment is Arranged

If you’re successful in court, the judge will order the debtor to pay back the amount owed. Depending on the financial circumstances of the debtor, the payment terms can vary wildly. It’s likely that the money will be paid out gradually over months or even years, and assessing and then agreeing to these terms can take a long time in itself.

The debt recovery lawyer you’ve hired may be able to negotiate better terms in order to expedite payment as well as help you keep track of whether the debtor is staying on top of their payments. 

Conclusion

While the words ‘debt recovery’ are enough to make most people shudder, the stress of the debt recovery process can be dramatically reduced by enlisting the services of debt recovery lawyers in Melbourne. They’ll be able to guide you through the process with minimal stress as well as handle any and all correspondence between parties, further removing the stress of having to liaise with a disgruntled debtor.