November 08, 2018
How to Go About Recovering Money You’re Owed
When it comes to recovering a debt that is owed to you, personally or professionally, debt collection may be the best option. Debt collection can be a confusing legal process, and if you don’t know how to approach it correctly, you may never see your money again.
Recover Money with Debt Collection
1. Contact the person or persons that owe you money.
The first step in debt collection is to contact the individual or person who owes you money by phone or in-person. Make sure you have the original contract or any legal documentation that demonstrates that they owe you money so you can reference the documents in your conversation. Speak calmly. You may be able to make an informal agreement to get the debt repaid.
2. Write a letter.
Your next step in debt collection is writing your debtor a letter if a phone call or meeting doesn’t work. In the letter, you need to specify how much money is owed, how and when they incurred the debt and any steps you have already taken to collect. Also, include specific information. such as:
- Your name and address;
- The name and address of the other party;
- Dated copies of all papers related to the debt;
- A specific date by which you require payment, giving the debtor at least one week; and
- The consequence if no payment is received.
You should also request that the debtor submit any disputes to your collection claim in writing.
3. Seek out mediation.
Consider using a mediator to further pursue debt collection if your debtor doesn’t respond to direct contact. Mediation can help you negotiate with your debtor to find a remedy without having to appear in court. Mediation can help you quickly resolve the debt, but it may not be as effective as going to court since there’s no guarantee that your dispute will be settled.
4. Consult a solicitor.
If negotiation and mediation fail, consider hiring a solicitor to handle your debt collection case. Solicitors have a lot of experience in debt recovery. They’ll charge a fee to write a letter to your debtor threatening legal action. A solicitor’s letter might produce results if your previous letters had no effect on the debtor. There is no guarantee that a solicitor can successfully complete your debt collection; only taking the individual or company to court can promise a result.
5. Hire an experienced debt collection attorney.
You’ll need to take your claim to court if all other negotiation tactics don’t succeed. A trusted, experienced debt collection attorney can provide you with sound legal advice and successfully navigate your case to negotiate payments or file a debt collection lawsuit.