Most of us have been in a situation where someone has borrowed money from us and has forgotten to pay us back. While most of us will forgive our friends, family and even business partners when times are good the situation can become frustrating when the sum of money loaned is larger and begins to affect our personal lives or even the running of our business.

There are many situations where money may be owed to you or your business and debt recovery legal steps are required to enforce the collection of those funds. In this article, we run through the key reasons why you should use a law firm in this process, rather than a debt collection agency.

There might arise circumstances when you lend someone money, business services, or goods and they refuse to pay you back. That someone might be a trusted friend, a client, or even a company. The amount is now stuck and you’re not getting it back. In such circumstances, the friend, client, or the company becomes a debtor. This is where debt recovery proceedings come into play.

A letter of demand (LOD) is a formal letter that lists out a set of demands for the recipient to comply with. A letter of demand is usually sent by a lawyer on behalf of their clients and will often threaten additional legal action if the demands of the letter are not satisfied within a stated period of time.

In this article, we'll touch upon the main reasons to leverage a law firm to recover debts. For further information, please feel free to get in touch to discuss your matter.

The debt recovery process can be unique to every scenario, but our lawyers will be able to review your matter and advise on the best steps as part of any initial consultation. The goal in any debt recovery matter should be to try and recover early without needing to take the matter to court.