 No-one likes being owed money, and having to take debt recovery action to collect the debt. However, the reality is, that if proper steps are taken at the point of entering into an arrangement with someone who will owe you money, it may save you a lot of grief later. If the Debtor will not pay, and you want your money, you are left with no option than to start Court proceedings, if you want the legal means to collect the debt. Below is an advice on the steps you can take, which will increase your prospects of recovering the debt if you are forced to pursue it through the court system.
Improve Your Prospects of Successful Debt Recovery You have demanded the money, you have had a commercial debt recovery agent demand the money, and still the debtor will not pay. If you want that money, the only action left is to go to Court to get a Court judgement which will let you take other steps to force the debtor to pay. However, a Debtor can go to court and defend your claim for money, and sometimes, they can get away with it. If your claim for money is defended, to succeed at Court, you have to prove all of the following: Who the Debtor actually is, That there was an arrangement or contract between you, and That the money you claim, is actually owed. If you fail in proving any, or all of the above, you can kiss the money you are owed, goodbye. To avoid this happening and to improve your prospects of getting your money in debt recovery, you should, at the start of your dealings, take the two following simple steps: 1. Know Who You Are Dealing With! You strike a deal. It could be about anything, but, at the end of the deal, you expect to get paid. The first thing you should do, is to find out and know exactly who you are dealing with. It could be an individual, a company, or a partnership, but you need to know exactly who you are dealing with. You will be unsuccessful at Court if you are suing an individual, and the Court determines that the deal was with a company. You lose, and, you have to start again, against the right Debtor. You must take Court action against the right debtor if you are to win the case. Also, you should do some simple credit checks on the Debtor. A little money spent before entering the deal may save you a lot in the long run in debt recovery. 2. Always have The Agreement or Contract In Writing! If your agreement is not in writing, it is harder to prove who you are dealing with. It is not impossible, but it is harder, and just provides a loophole for the Debtor to try and get away with it. It also means that you have to do more work, and spend time, in proving, just this one point. You then have to prove what the deal was. This will involve even more work and time on your behalf, and can cost you more, if you get a lawyer or solicitor to act for you. Don't forget, if there is nothing in writing, you will be asking a Judge or Magistrate, to reconstruct the agreement based on what you say the deal was, and what the debtor says it was. The Judge or Magistrate does not know you or the debtor. They will make a decision on the evidence before them,and they don't always get it right. If there is no written evidence, it is known as oral evidence. If the terms of the agreement detailing what you are to be paid are not in writing, you are only providing the debtor with an opportunity to reduce the amount they have to pay, or even the opportunity to reduce it to nothing. It is also important, that if the deal changes, that you get any change in writing, signed by you and the debtor. There is no point in doing extra for a debtor, if after a hearing, the Judge of Magistrate does not find it was agreed to, or it was for a lesser amount than you are claiming. It can not be stressed enough that, any deal involving the payment of money should be in writing and signed by all the parties involved. It helps to ensure you can prove what the debt is, and who the debtor is, to the Court. Also, any changes along the way should also be in writing. It helps to ensure that you will recover the actual amount of money you are chasing. Debt Collection and Debt Recovery
can be quite
involved and complicated. You really should let the professional debt
collection agent or solicitor advise you as to the best course of
action, and look after it for you. It will cost you money, but in most
cases, provided the debtor has assets, you should recover the
additional costs you spend.
Phone 02-4333 1690 Fax 02-4333 5144 email: cchc@drakegroup.com.auLegal Support Provided by: 
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