Are you considering taking debt recovery legal action against an individual or business but don’t know how you can go about it?
If so, you are probably under quite a lot of pressure and are worried that you will make the wrong decision or that something will not go according to plan.
This can be a very stressful period for those considering debt recovery legal action.
The sheer number of unknowns can be very disorientating for people and can make the whole process a lot more challenging.
This is why it is best for you to have some simple steps or guidelines that you can follow if you are looking to take debt recovery legal action.
Having these steps can help you to know what to do and can direct your thoughts and planning about the matter.
In this article our Australian debt collectors will discuss some simple steps that you can take if you are looking to engage in debt recovery legal action and how they can help to make the process run a lot more smoothly.
Legal Action for Debt Recovery
This article will outline four (4) steps that you can take before commencing legal action in the Courts. This includes:
- Make contact before taking legal action.
- Make sure it’s the right choice.
- Try alternative dispute resolutions.
- Hire a debt recovery lawyer.
We will explain these in more detail below.
Make Contact before Legal Action
Before beginning to take legal action against another party, the first thing that you should do is reach out to them in some kind of way.
Contacting a person that you are looking to sue can help the process in a multitude of ways.
As we know, debt recovery legal action is generally a last resort and should only be used if you think there are no other ways to proceed or if you do not see this matter being resolved in any other way.
Preventing debt recovery legal action should be a key goal of yours and of your lawyers, so contacting the individual will generally be a great first step.
Several things can originate from contacting someone who you have a legal issue with.
The first is that they realise that the issue is more serious than they once thought and will resolve the issue (if it is resolvable of course) with you before you have to sue.
The second is that you proceed with the debt recovery legal action, but you do not necessarily lose the business or otherwise relationship that you may have with this party because you gave them a heads up.
There are, of course, several other ways that it can go and, if your situation does not suit contact, it may not be the step for you
Make Sure it’s the Right Choice for You
Another step that you should take before you take debt recovery legal action is to make sure that it is the right choice for you.
Legal action is a complex process that involves quite a lot of sacrifices. It is, therefore, important that you are sure that it is the right route for you before proceeding.
One element that you should consider is the costs and whether or not you will be able to afford them.
Taking debt recovery legal action involves several elements with higher costs that can add up and require you to spend a lot of money on it.
If you are already struggling with your finances or think that your money would be better spent elsewhere, maybe think twice.
Furthermore, if you think that you would be able to get by but only just, maybe reconsider as you must have enough money available to cover you if something goes wrong.
Another consideration that you should make if you are considering taking legal action is if you will have enough time to manage the matter while still continuing with your life outside.
If you are pressed for time managing your family or your job or whatever other responsibilities you have, debt recovery legal action may not be the best thing to place on your schedule!
This being said, debt recovery legal action may be essential sometimes and whether or not you can afford it or have the time for it may not be something that matters to you.
Legal costs are sometimes covered (in part) if you win your matter also, so keep that in mind.
Try Alternative Dispute Resolutions
Another step that you should take before taking debt recovery legal action against another party is alternative dispute resolution or ADR, techniques to have the matter resolved outside of court.
As we have already discussed in this article, debt recovery legal action is a big commitment and can take a lot out of a person.
Alternative dispute resolution, however, is a great way to resolve your matter (with outside help) without the high costs and time commitment that debt recovery legal action would require.
Some matters cannot be resolved on your own, we get that! But legal action isn’t the only way that you can have someone else to help with it.
You may wish to try the ADR method of mediation to help resolve your matter.
Mediation is the process of having a third party, or a mediator, oversee a discussion between two parties about their issue.
They will help to ensure that the conversation remains directed and productive and, most importantly, civil, and not aggressive.
There a plenty of other types of ADR that may work better or worse depending on the details of your particular matter.
Hire a Lawyer for Debt Recovery Legal Action
As you begin to put the debt recovery action into motion, it will be wise for you to hire a lawyer to help to advise you through the matter.
A lawyer is a professional in all things law and has likely been involved in a matter similar to yours in the past.
Even if they haven’t had a matter quite like yours, they will have more than likely been involved in some sort of court action in the past.
This can mean that you have a guide through the process, you know your rights and responsibilities, and will, most importantly, have a professional represent you in court.
Having that representation can easily be the difference between winning and losing your trial
Debt Recovery Legal Action Key Takeaways
Beginning debt recovery action against another party can be a difficult time.
This is why it can be very beneficial for your matter to have some established, basic steps that you can take to begin the process smoothly and without too much stress.
A debt recovery lawyer can be a really great help when you are beginning to consider legal action also, not just during the matter, so consider hiring one a little earlier in the process to relieve that extra stress!
Advance debt collection is an Australia-wide commercial debt collection agency and credit and accounts receivable management. We can recovery your debts, conduct skip tracing, and manage your accounts receivable. We collect your debts for commission only. This means no collection, no commission. We are professional debt collectors with combined 20 years of experience to help you collect your debts. We are partnered with expert litigation lawyers with years of experience in debt recovery, enforcement, and insolvency. Under the Agents Financial Administration Act 2014 Advance Debt Collection Pty Ltd hold authority number 4583821 to act as a debt collector. ADC Advance Debt Collection® is a registered trademark.