Persons who find themselves in the position of a creditor should seek legal assistance as soon as possible.  Too often however, creditors attempt to resolve the issue themselves, only seeking legal advice to recover monies owed when it is too little too late.  Often the issue can be resolved without taking legal action, but more often than not, creditors may find that their efforts to recover the debt are futile, and their delay in seeking legal advice either raises problems which not only complicates the matter, it may also prevent them from bringing a claim at all.

One such problem is for example, when the creditor is unaware that the debtor has since declared bankruptcy.  A creditor can save time and resources by consulting a solicitor early as searches can be conducted to establish if the debtor is solvent, thereby identifying the best course of action available to the creditor.  
 
Another common problem is that as time passes, records of the debt may have been destroyed or lost and recollection of the events may become vague.  Evidencing the debt then becomes problematic.  

In most cases however, creditors will find that the person or company owing the money has since disappeared.  If this is the case, a creditor will incur further costs in conducting searches and investigations to locate the debtor’s whereabouts.  If the debtor cannot be located, the creditor will then face the difficulty of being unable to serve documents on the debtor.  As the debtor may not be able to be served directly, the creditor may incur further legal costs, as an application for substituted service will need to be made.  

Most clients are unaware that there are time limitations restricting the time a creditor has to bring a claim for the recovery of monies.  Once this period expires, the monies become irrecoverable or the creditor must apply for leave of the Court to institute proceedings.   Once again, the creditor will incur further unnecessary costs, which could have easily been avoided.

Seeking legal advice early on will assist you in avoiding unnecessary costs and complications.  Most importantly, not only does engaging a solicitor take out the guesswork, but it also means that you will know your rights and the avenues of relief available to you.  Therefore, you will be able to make an informed decision as to how to proceed and how to obtain the best outcome in a timely fashion.   

At Hatzis Lawyers we offer full debt recovery services that allow creditors to “hand over” their debtors to us and we do all of the legwork. Please do not hesitate to call us on 1300 HATZIS to enquire about our debt recovery vouchers or if you have any other queries.