How Our Debt Collection and Litigation Lawyers Help Creditors to Avoid Financial Losses

 As a creditor, your company or bank also has rights. One such right is to expect that the debtor will do well on their promise to adhere to the credit agreement. However, if a debtor defaults on payments and does not enter into an arrangement to pay the outstanding debt, your firm risks losing money. Once the debtor has defaulted for three consecutive months, you know there is trouble and you may need to make use of debt collection and litigation lawyers to enforce your right to payment.

Debt collection entails the formal demand to be paid what is due. Once the creditor has delivered the demand to the debtor, the creditor can request a summons to be issued if payment is still not made. Our debt collection and litigation lawyers do so with the aim of getting a judgement against the debtor, should the debtor still not pay the debt owed. Keep in mind that only creditors personally or appointed lawyers can issue a summons for debt payment.

Apart from litigation services regarding debt and credit agreements, our lawyers assist corporate and bank clients in collecting the debt owed. We deliver the formal demand of payment, which is done via registered post, fax or email to the debtor, and list the debtor at the credit bureau. We also issue the summons, which is forwarded, to the sheriff for delivery to the debtor. Hereafter, if payment is not made, we apply for a judgment and warrant execution. This ensures that the debtor’s assets can be written up for sale in execution. If the debtor has no assets, we initiate the financial enquiry to determine if the debtor perhaps hides assets or has an income to make good on the debt.

Our litigation lawyers are able to take on challenging cases where debtors owe large amounts of money and disputes arise over issues such as reckless lending practices. In addition, we sit down with debt councillors in negotiating favourable terms and reasonable repayment amounts where the debtors have entered debt review. Our focus is to protect the interests of our creditor clients and where necessary, our litigation lawyers oppose unreasonable proposals in court.

Many creditors end up on the short end of the stick simply because they fail to recognise in time when their business debtors are in financial trouble. Creditors also experience large financial losses when they fail to attend the first meeting for business rescue of one of their business client debtors. The above and many other debt and credit aspects are skilfully handled by our team of debt collection, insolvency and litigation lawyers, helping our creditor clients to avoid large financial losses.

Call on our debt collection, insolvency and litigation lawyers to assist with foreclosures, liquidation and sequestration applications, sale in execution, and litigation.


Disclaimer: This article is for information purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing –  May 2018.