Why does a debtor need a lawyer

Through forced execution : It is accomplished by registering the enforcement request for the role of the court bailiff designated by the court and keeping in touch with him until the completion of the forced execution and recovery of the debt 4. Debt Collection lawyer. What you can read next State Aid or Aid from the State. Joint Ventures — A word of Caution. A decision regarding the interest clause in credit contracts. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.

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If, for instance, commencing legal proceedings will be too prohibitive in terms of costs , bearing in mind the amount of debt you are claiming, it may not be wise to commence legal proceedings to recover your debt.

Therefore before you hire a debt collector to collect on your debt, consider hiring a debt recovery lawyer. He or she will be able to go through with you the relevant considerations and options, and advise on the best strategy for you.

My fee structure for a debt recovery case is straightforward and transparent — a fixed fee for each stage. This way, you as a client can be assured of the fees and have one less worry while trying to recover your debt. I do not charge hourly rates since I have a thorough understanding of the extent of work required for debt recovery cases and can confidently estimate how much I should charge for the entire process.

On the other hand, debt collectors usually charge on a percentage basis of the debt to be collected. Some debt collection agencies also charge a significantly higher rate of commission for older debts while others may take payment upfront.

This has caused unhappiness and problems as some debt collectors disappear after receiving payment, resulting in little or none of the debts recovered. If you would prefer to hire a debt collector, I would recommend that you find out how their fees will be pegged and ensure that their fee structures are transparent. As a client, you certainly want and need a reliable party to help you recover your debts, and this includes the debt collectors you may hire.

Thus, you should be aware of certain risks that may come with hiring debt collectors. In fact, just last year, a debt collector and his 6 accomplices who created a ruckus at a Funan DigitaLife Mall food stall were jailed after being convicted for several offences, including unlawful assembly to commit harassment and mischief with common intention. Their acts of mischief included one member kicking a rice cooker and shoving a cash register onto the floor.

Another member even threw various food items into a large pot of soup, spoiling the soup. If debt collectors were to run into trouble with the law, it would cause more hassle and inconvenience for you to recover your debt. As alluded to earlier, debt collectors may face jail terms and hefty fines for illegal conduct. If your debt collector is jailed, the process of collecting your debt may be delayed.

This is unless — and you should verify this before hiring the debt collector — the debt collection agency has taken out Errors and Omissions Insurance to indemnify you. Hopefully after reading this, you now have a better understanding of what hiring a debt recovery lawyer or a debt collector entails. It must be stressed that being careful with your options is of utmost importance since you will want a smooth and efficient debt recovery process.

Thus, it is recommended that you do a thorough consideration before deciding on whether to hire a debt recovery lawyer or debt collector.