Unpaid debts can put an unnecessary strain on both you and your business and can seriously jeopardise customer relations. There are many reasons why an individual or business may be failing to follow through on their unpaid debts, and the steps you should take to reclaim funds will depend on the debtor's situation.
Common reasons debtors don't paySometimes, debtors are full of false promises. They keep informing you payment is coming, but never seem to follow through.
Other times, they're simply waiting for a client to pay them so they can pass the money onto you.
Sometimes, they make a small part payment but ignore the rest, moving on to other suppliers instead. Sometimes, they just ignore the invoices sent to them all together.
While a lack of money is often the reason behind a debtor's failure to pay, sometimes more sinister motives are at work. Scammers may use fake details to take your money and could even make personal threats if you attempt to recover it.
How to reclaim unpaid debtsThere are many effective ways you can deal with debtors who are refusing to cough up unpaid funds. Although it is illegal to threaten or harass the debtor, you are entitled to contact them about the outstanding amount via letter, phone or in person. Some useful steps include:
- Sending a final notice statement requesting payment
- Phoning the debtor directly to see what is preventing payment
- Arranging a payment plan if the debtor is experiencing cash flow issues
Shine Lawyers - Debt Recovery DivisionIf all your efforts to chase a debtor have been unsuccessful, Shine Lawyers' Debt Collection team can help you take the next step in reclaiming your debt. Our team of qualified experts possess the legal skills to ensure you receive the monies you are entitled to.
The burden of legal costs often deters businesses and individuals from reclaiming their debts. At Shine Lawyers, we operate on a 'No Win, No Fee' basis; our debt collection services are offered free of charge until you get a successful result.
If you are struggling to reclaim your unpaid debts, or simply want more information, get in touch with Shine's Debt Recovery Team today.
Written by Shine Lawyers. Last modified: June 14, 2017.