Does someone owe you money? Or do you owe money to someone but can't pay it?
Having outstanding debts can be very problematic for any business. It not only affects cash flow, but can also tarnish an otherwise great relationship with clients and suppliers. Managing how debt is recovered is crucial if the relationship is to be maintained. The longer a debt remains outstanding, the harder it will be to recover. The sooner you act to recover the debt, the better, before the debtor runs out of assets or even disappears. Legal action to recover a debt can be commenced at any time within six years from when the debt becomes "due and payable".
Shire Legal can assist you with your debt recovery by:
drafting the initial letter of demand
preparing the Statement of Claim for filing in the appropriate Court, to commence proceedings.
negotiating with the Defendant (or the Defendant's solicitor) for a suitable resolution to the claim, such as full payment of the amount claimed, or paying by instalments
pursuing the claim in the appropriate Court
applying for a judgment debt, in the event that the defence fails
enforcing the judgment debt.
Have you been served with a Statement of Claim?
If you have been served with a Statement of Claim, Shire Legal can assist you in preparing a defence to the claim, or negotiating a suitable resolution of the claim. Please note that you have 28 days to lodge a Notice of Grounds of Defence with the Court, otherwise default judgment will automatically be made against you, and the amount claimed will automatically become a judgment debt. Therefore you should seek legal advice immediately.
How enforceable are the contracts you have with your customers?
Of course, the risk of having bad debts can be minimised if your business has a written contract with each of your customers - whether it is well drafted standard terms and conditions that are issued to each customer, or whether it is a tailor made contract for individual customers.
Shire Legal can:
review your existing terms and conditions and/or contracts; and
recommend amendments and improvements to your documents.