Someone owes me money. How do I recover it?

It could be that someone owes you rent for leasing your property. Maybe someone owes you money for goods and services you provided to them. In any case, recovering debts owed to you is a process that must be managed carefully to stay onside with the law and maintain the relationships you have with your debtors. Here is a basic run-down to ensure you recover your debt properly.

First, before taking any steps, ensure that you can prove your debt. Keep copies of anything that you can use to prove that you have that the debtor owes you money. This might include documents such as invoices, contracts; or even forms of correspondence such as emails or texts. You must be able to show when and how the debt arose. Be mindful of the fact that you can only legally pursue debts that are no more than 6 years old. The 6 years may begin from either when the debt arose or when it became due.

Always be polite and reasonable in your correspondence with the debtor and be as accommodating as you can. Note that threatening conduct including unreasonably demanding more and more, blackmailing or acting under pretences might put you in contravention. It also makes the process hostile, which would make it more difficult to come to an arrangement with the debtor.

If you have tried all of these and there is no response, or the debtor cannot or will not pay, you can choose to pursue the debt legally. Our solicitors can help you in pursuing this debt legally. We can serve Letters of Demand on your behalf. Letters of Demand are a formal written notice demanding satisfaction of the debt within 21 days.

If the 21 days lapse and the debt is not satisfied, we may file a Claim in Court on your behalf to recover the debt. If the Court finds favourably for you, you will then be able to take steps to enforce the payment of that debt. For more on this, or any of the matters mentioned above, please do not hesitate to contact us.

Please note that this article is not a legal advice and we are not responsible for any action you take.

If you would like to discuss anything in this article further, email Straits Lawyers at info@straitslawyers.com or call at 08 8410 9069.