Running a small business is hard and not getting your bills paid is harder. If suppliers and customers breach the agreements you have reached, this can lead to exhausting disputes and business inefficiencies.
Alternatively, you may be in a position where a business or an individual you have had previous transactions with is now pursuing you to recover a debt you allegedly owe.
Why SettleHub?
We are a legal firm that specialises in debt collection and commercial litigation. Firstly, we attempt to resolve disputes as early as possible by writing a letter of demand outlining your claim. In our experience upon receipt of such letters debtors will usually either settle the claim or offer a compromise.
In the event that we do not get a favourable response from the debtor, we take swift action to assist you in recovering your debt.
How do we help creditors and aggrieved parties?
We will institute an action in the appropriate court by drafting a Statement of Claim
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Depending on the debtor's answer (or lack thereof), it may be appropriate to file a lawsuit.
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Choosing the appropriate court is a careful balancing exercise, as often you will need to make trade-offs between costs and speed between the different courts.
Appearing in mediation and assisting in negotiating the debt
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Courts often seek that parties first try to resolve their differences between themselves. As such, several pre-trial steps are built into litigation procedure.
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A common first step is mediation. Our team has represented many clients through the mediation process and will ensure you are consulted during each step. Our litigation lawyers will prepare the necessary position papers for the mediation and robustly defend your position to secure the best-negotiated outcome.
Preparing for trial
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If we are unable to settle the matter at mediation, our lawyers will prepare you for trial, source the appropriate barristers to appear in court and keep you informed of the costs.
How do we help debtors?
If you have been served with a letter of demand or a statement of claim, we will assist you to settle the debt by writing a clear and concise offer "without prejudice" (i.e "Calderbank" offer) to the other side.
Our lawyers will take the time to sit down with you and analyse the circumstances that led to the other side taking legal action. We will meticulously identify any potential overstatement of the claim and whether you have any counterclaim against the claiming party.
If the matter proceeds to courts, we will produce the required court documents. It is critical that the counterclaim submitted to the court/tribunal properly states your reasonings. We can help you design your claim documentation so that your case has a strong foundation.
Our lawyers will assist you in making a cost-benefit analysis to review the consequences of defending a claim versus settling a claim early.
FAQs on Debt recovery and Civil litigation
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Using a debt collector is prudent if the debt to be recovered is small. Debt collectors are limited by their inability to initiate legal action in court.
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A lawyer can assist you to better recover larger debts. This includes debts exceeding $10,000.00. This is primarily because a lawyer can file an action in court to recover a debt where there are offers of settlement from the creditor.
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Your debtor may be able to pay their debt in instalments, which is an agreed-upon sum paid in part at regular intervals. Negotiating a payment plan is a frequent approach for recovering funds through a long-term payment arrangement.
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If you can reach a consensus with a debtor, it is best to create an agreement with the debtor incorporating terms of the settlement. This will assist you if the debtor breaches the agreement.
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It is best to reach out to the creditor well in advance of any issues and notify them.
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Subsequently, we recommend that you negotiate a payment plan. If the debt is of a complex nature, you may need to use a lawyer to assist you in this process.
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Finally, you should document your agreement to ensure the creditor does not change their mind or attempt to force you to repay the debt sooner.
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This entirely depends on the provisions of the contract that was entered into with the customer.
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If there is no contract, you should notify the customer that you will cease your service unless the due amount is paid.
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It is important to evaluate the damage your non-supply could have on the customer or future business relationships.
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Your creditor may take one or more of the following actions:
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Suspend your account and refuse to give any more products or services.
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Levy interest on any unpaid funds as specified in their terms of trade (where applicable);
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File a case in the Magistrates' Court or the County Court; and
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Make a Creditor's Statutory Demand for debt payment.
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