What is Debt Recovery?
Debt collection is called a process where the debtor is called to settle his credit obligations. Debt collection is a time when a debtor, who can be both a legal and a natural person, contacts the debtor, informing him of the debt and recovery costs.
Lawyer ABC offers:
- Out-of-court debt collection or collection;
- Judicial recovery of debts.
Lawyer ABC professional and knowledgeable debt collection specialists ensure high quality and fast debt recovery, while paying attention to the sustained relationship between the creditor and the debtor, if necessary. We will take care of everything from the very beginning to the successful conclusion of the pre-trial debt collection, ending with the most appropriate court proceedings and transferring the court decision to the bailiffs, if necessary, to seize the debtor’s property and bank accounts. Often, things are left behind after the first month, but not under the guidance of Lawyer ABC, we will follow the course of the case, regularly request reports and provide diligent work from all involved.
A 10-year experience-tested system
- We make a plan for the client that will work exactly in his case with the debtors:
- Agree how much time is being given to the debtor to pay the bill, for example, 30 days We send a reminder if the invoice is not paid after the 25th day;
- After 45 days, a letter is sent with a warning – if no payment is made after 15 days, the case will be transferred to the debt collection company, which will increase the debtor’s costs;
- If the debt is not repaid after 60 days, the case is immediately transferred to debt recovery.
- Share valuable tips:
- We invite our customers to be rigorous at the outset with a strong posture and backbone to keep the debtor’s requests for extended repayment multiple times, as experience shows that debt is not finally repaid;
- We show a clear sequence of events for the debtor and do not allow any deviation, stating that, if the debt is not repaid, the case will be automatically transferred to debt recovery without any possibility of recourse to the second and third option;
- It is recommended to remind you that by transferring the case for debt collection, the debtor will be placed in a non-payer database, which in the future may make it difficult to obtain leasing, credit or participate in procurement.
The difference between debt collection and debt collection or assignment
- Debt collection – with the debtor communicating on the basis of the mandate we have received on behalf of the client, and the client pays only for the work actually done (recovered money from the debtor), at the end of which we draw up a commission bill. It should be taken into account that if the circumstances allow to wait, at the end of the process the client will recover all the money recovered by paying only a commission, which is usually 10% of the principal amount.
- Debt Buying or Assignment – By paying to the customer, we get the right to debt, it gets into our property, and we can act on our own account with the debtor in the future.
- To be taken into account – when selling a debt, the customer receives only 30% or less of the total amount of debt, which may depend on both the debtor and the existing documents. However, if money is needed right away, this can be a better solution than debt collection. It will definitely be helpful to evaluate our specialists.