Proceedings Bankruptcy Proceedings Enforcement Effective debt recovery action is an essential facet of any business. It maintains cash flow and the necessary level of liquidity so that expenses and overheads can be paid and the business can continue to operate.
Debt recovery is also important for individuals in recouping personal and professional debts.
There are several courses of action available for the recovery of debts, depending on whether the debtor is an individual or a company, their assets and their cash flow or income. Prior to commencing any action, it is always prudent to issue a letter of demand . An effective demand letter may result in the debt being paid in response to the letter so that costs of further action can be avoided. If the demand letter does not result in payment of the debt, the next step is to take the appropriate recovery action. The processes for a minor debt claim are simpler and it is relatively cheaper to undertake.