Are you experiencing difficulties with a customer who is seriously overdue? Because it’s always stressful to embark on a collection procedure, the help of a lawyer can prove invaluable in obtaining payment of what you are owed. Here are the steps you need to take to guarantee payment of your fees.
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When to initiate proceedings
You’ve done your job and your customer is satisfied. However, when it comes to paying the agreed amount, relationships become more complex. You made one raise, then two. They are unsuccessful and the payment schedule is well past. So what can you do to get out of this impasse, and what action should you take to collect your outstanding debts?
- Taking action
You have sent reminder letters giving deadlines for payment of your outstanding invoices. If no payment has been made by the end of these deadlines, it’s time to take action. At this stage, you may wish to seek the assistance of a legal professional. The skills of a lawyer will be invaluable. He will be able to assist you in this process, to force your debtor to make payment.
- Applying late penalties
Your lawyer will help you calculate the amount of late payment penalties. These start from the first day of non-payment. As these penalties are added to the amount of the initial debt, and increase day by day, it is in the debtor’s interest to pay as soon as possible. Otherwise, he runs the risk of accumulating debt.
- Formal notice
Your lawyer can draft a letter of formal notice for you. This is the final stage in amicable collection. Delegating this task to a legal professional can have the desired effect on your debtor. He could make the payment in order to avoid further legal proceedings. At this stage, it’s important to maintain your position and continue with the procedure, should your contact remain silent following these repeated reminders. A lawyer is then required to summon the debtor to appear before the competent court. Your lawyer can then represent you before the courts to obtain enforcement of payment.
- Finding common ground
Before going to court, don’t hesitate to contact a law firm. Contrary to popular belief, they can save you time and money. It’s important to remember that a lawyer’s job is also to negotiate, and that they can easily find amicable solutions. This saves the parties from wasting time in lengthy and costly procedures. Lawyers are able to develop convincing arguments to obtain payment of the sums claimed directly from the debtor, thus avoiding court intervention.