Simple Steps to Follow to Recover Debt Owed to You

If you’ve loaned out some money and you’re wondering how to get it back, there are legal channels you can follow to streamline the process. It’s common for debtors to fail to repay their debts, which is why there are many law firms that offer services for debt recovery in Melbourne. However, it’s prudent for a creditor to always keep a record of all monies loaned out to track cases of late or missed payments. This information is crucial in case you need to start legal proceedings to recover your debts. Continue reading for some more important steps to follow before and during debt recovery.

Steps to Follow Before Embarking on Debt Recovery

Before starting the debt recovery process, there are some steps you need to take. These include:

  • Gathering sufficient information pertaining to the debtor and ensuring that they know they have an outstanding debt to clear. Some debtors may have forgotten their repayment schedule and might just need a reminder.
  • Revisiting your agreement and checking that all terms in the agreement are free of loopholes and that the debtor has indeed breached the agreement. Prepare your documents and put them in order in readiness to start the process.
  • Considering the legal repercussions of what you’re about to do. This involves ascertaining that the debt you want to collect is worth taking legal action. Furthermore, it also involves the type of relationship you have with your debtor. The debt recovery process can be harsh and can cause strain to relationships if personal in nature.

Steps to Follow to Recover Your Debt

Once you’ve taken the steps above, it’s now time to start the process for debt recovery in Melbourne. Your next steps to take include:

  • Issuing a courtesy reminder to your debtor. Let them know that the debt is overdue and encourage them to pay it back. Be sure to include your preferred payment details.
  • Issuing an overdue payment reminder. If your debtor remains non-responsive to your courtesy reminder, or has missed the set dates, you should send another reminder to indicate that the debtor is overdue on their debt repayment.
  • Issuing a final notice. If the debtor has missed the first two reminders, it’s time to issue your final notice indicating the amount due and the number of days overdue.
  • Making direct contact. If written communication channels have failed, try and make direct contact with the debtor. This will allow them to realise the seriousness of the issue, which might trigger them to take action.
  • Issuing a formal letter of demand as a last resort.
  • Considering legal action or a debt collection agency. If every attempt has failed, you can choose to either take legal action or contact a debt collection agency for debt recovery in Melbourne. However, you should always consider the prevailing legal regulations surrounding debt recovery procedures before you embark on this You’ll also need to find a trusted debt recovery lawyer who can assist you throughout the process.