Debt Recovery

What is Debt Recovery?

Debt recovery is purely and simply the art and science of recovering money from businesses and individuals who owe debts to other businesses and individuals. Although on the surface it would appear that this is quite a simple task, there are many reasons why debt recovery can get complicated and should really only be handled by a professional who has experience and a system for dealing with matters like this. There are a number of considerations which need to be managed during the entire debt recovery process which if they are not managed is unliklely to lead to a sucessful and profitable debt recovery action.

What are the considerations in debt recovery?

1. Can the debtor pay?

In every stage of the debt recovery process it is necessary to the continue to monitor if possible the payment capacity of the debtor. Getting to the end of a long and drawn out legal battle to dicover that the debtor is insolvent and will file bankruptcy is in some circumstances a complete waste of time unless as a creditor you have some other motivation in chasing the debtor other than the recovery of money. Some of the ways that you can check if they can pay is to search the property registered of the state in which they reside or you suspect that they have assets. You can also search ASIC company registers for records of beneficial shareholdings or company officeholder positions which will indicate that a person the control of a company with assets that they can use to pay their debts. Also, most of the time savy individuals will hide their assets with their spouse or other family members to prevent the clawback of assets by creditors.

2. What is the enforcement cost?

At every stage of the recovery process, the enforcement cost must be monitored. Most debt recovery firms charge a commission of between 30 and 40 percent. Obviously this is quite high. Lawyers charge fees on and hourly basis and a matter where there is any work involved will rack up fees very quickly indeed. Obviously the enforcement cost relates to what the profitability of the recovery action will be so it is very important to ensure that the recovery action is making you money and not costing you money.

Debt Collection Letter Resources

• Australian Debt Recovery Australian Debt Recovery from Australian Debt Recovery Services. Your complete Australian Debt Recovery Service.
• Commercial Debt Recovery Essential Considerations in a commercial debt recovery and what you need to know about commercial debt recovery. Find out what every small business owner should know about commerical debt recovery.
• Debt Recovery Guidelines There are a number of guidelines which relate to the way that debt recovery agencies can enforce debts in Australia. In Australia the major bodies regulating the operations of debt collectors is the ACCC and ASIC and the Office of Fair Trading in each state.
• Debt Recovery Lawyers A debt recovery lawyer specialises in the legal processed related to debt recovery and collection like issuing a statement of claim, seeking orders for repossession, garnishee or issuing documents like statutory demands, bankruptcy notices, creditor's petitions and the getting sequestration orders. A debt recovery lawyer can be most useful for offering advice on how best to pursue the debt and also on actually creating the process and procedure which is used to recover the debt.
• Debt Recovery Letter A debt recovery letter is a letter which recovers an amount from another legal person. We have a template available on this site which allows you to compose a simple letter which will force them to pay or face legal action for only $14.95.
• Debt Recovery Management What are the key principles of debt recovery management? How can I use good debt recovery management? Find out what every business person should know about debt recovery management.
• Debt Recovery Process Basic information about the debt recovery process. Learn what steps you need to take recover your money quickly and with little additional expense.
• Debt Recovery Solicitor Having a debt recovery solicitor can mean the difference between winning and losing a case about debt collection. Find a good debt recovery solicitor.