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An Affordable Way to Recover Your Debt With 3E Accounting
At 3E Accounting, our associates can help you with your debt recovery process and issue a Letter of Demand on your behalf. Find out how our professional and affordable solutions are the answer.
For businesses big and small, the debt recovery process is unique to each situation. You need the proper guidance and legal advice to navigate your circumstances. This will ease your recovery process significantly when you have the right team on your side. The earlier you recover your debt, the higher the chances you don’t have to go to court.
What is the Debt Recovery Process?
The debt recovery process is when you attempt to recover money that is owed to your business. If your personal life or business is affected by unpaid debt, then you need to take the proper legal steps to help you recover what is missing. In this case, you would send the individual or business who owes you money a Letter of Demand.
3E Accounting associates can assist with all types of debt. This includes whether you’re an individual trying to recover your loss, or a business seeking payment that is owed.
The debt recovery process will happen as follows:
- Have an initial consultation with your professional advisors
- Conduct your due diligence
- Issue your letter of demand
- Wait for a response
- File your court papers
- Enforce a court decision
What is a Letter of Demand?
Sometimes called an LoD, it is an official letter sent on your behalf. That letter would request that the debt is repaid in full. This letter is usually drafted by a lawyer, but it is not always necessary. An LoD is only sent once you have tried multiple times unsuccessfully to recover your payment for an outstanding invoice.
When you issue a Letter of Demand, you are informing the other party that you are legally enforcing your rights. You are also informing them that they are in breach of the agreement or contract made between you when they failed to make the payment.
What Details Should the Letter Include?
An LoD should include the following details:
- Specifically states the amount that the debtor owes and is obliged to pay.
- Informs the debtor of your legal rights and your awareness of these rights. It also outlines that the debtor is obligated to pay what is specified in the contract.
By sending the letter, you are letting the debtor know the matter is serious. You are informing them that you have chosen to take a serious approach because they have failed to comply. Your Letter of Demand will inform the debtor you plan to pursue legal action if they still fail to fulfil their required obligations.
LoD’s are used to substantiate any claims that you make in court. It lets the court know you have given sufficient notice and time to the debtor and informed them of your intentions.
What to Keep in Mind for Your Letter?
It is important to take proper steps when you execute this process. Before issuing the letter, you should try other friendly methods. Letters are the last resort of those who don’t work.
When drafting your letter, keep the following tips in mind:
- Keep your demands clear and reasonable
- Avoid demanding anything that is not part of the original agreement or contract
- Attach relevantly and supporting documents
Send your letter as a registered post so it can be used as evidence in court.
Let 3E Accounting Associates Help You Recover Your Debt the Professional Way
Let 3E Accounting associates help you take the assertive yet professional approach to your debt recovery. To find out more about our associate’s services, contact our team today.