Why use a law firm to recover debts?

Introduction to Debt Recovery through a Law Firm

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.

Why use a law firm to recover debts?

Your Money Will Be Properly Accounted For

Law firm accounts are subject to oversight by the Law Society of Singapore and are bound by strict rules of professional conduct. You will be assured that the monies collected by your designated debt recovery lawyers on behalf of a law firm are accurately and properly accounted for, ensuring that there is no issue of a disparity between the amounts paid by a debtor to the debt recovery lawyers and the amount reported to you by the law firm.

You Will Not Be Implicated If The Debt Collection Agency Breaks The Law

Debt collection agencies do not have special powers of investigation or entry. If they threaten or harass a debtor, or as your agent causes damage or breaks any laws you may be vicariously liable as their employer.

You Can Terminate the Services of a Law Firm Easily

Law firms, especially those that specialize in debt recovery legal procedures, are regulated and subject to oversight by the Law Society of Singapore. A law firm can never stop you from terminating their services or charge cancellation fees if you decide not to utilize them. Employing debt recovery lawyers adds an extra layer of assurance as they are held accountable to strict professional standards and operate under constant review.

Transparency In fees

At IRB Law we provide fixed quotes for the work we undertake before we start. There are no hidden charges and no cancellation fees, you’ll know the cost of our services from the outset and can decide on whether to engage us after reviewing this information.

Other Common Questions About Debt Recovery Legal Issues

What should I do if debt collection agencies come to harass me?

Call the police immediately, especially if you feel threatened or afraid. Debt collection agencies do not have any special powers or authority to demand entry into your home/office/shop, search your belongings or documents, or use threatening language. They are subject to the same laws just like everyone else. Anything that you cannot do to another person without breaking the law, the same applies to them.

The debt collection agencies demand that I pay more than what I actually owe to my creditors, what should I do?

The final decision on the exact amount owed by one party to another can only be made by the Court. You should not feel obliged to pay the amounts demanded by the debt collection agency simply because they ask for it. If the debt collection agency tries to harass, threaten or otherwise intimidate you, call the police immediately.


Using a law firm for debt recovery legal actions offers several advantages over a debt collection agency. A law firm’s accounts are subject to strict oversight, ensuring accurate and proper accounting of collected funds. In contrast, debt collection agencies may not provide the same level of transparency and accountability. Additionally, law firms are regulated by the Law Society of Singapore, and clients have the freedom to terminate their services without facing cancellation fees. Law firms, particularly debt recovery lawyers, also offer fixed quotes for their services, promoting transparency in fees and charges.

Glossary and Key Terms

Debt Recovery: The process of collecting money owed by debtors to a creditor or a business.

Debt Collection Agency: A company or entity specialised in collecting debts on behalf of creditors.

Law Society of Singapore: The regulatory body that oversees the legal profession and ensures compliance with professional conduct rules.

Vicarious Liability: When one party is held responsible for the actions of another person or entity, typically an employer for the actions of their employees.

Fixed Quotes: Providing clients with a predetermined and non-negotiable price for legal services, ensuring transparency in fees.

Frequently Asked Questions

Q: Why should I use a law firm for debt recovery legal procedures instead of a debt collection agency?

A: Law firms, particularly those with experienced debt recovery lawyers, offer proper accounting oversight, protection from vicarious liability, and transparency in fees, ensuring a more regulated and accountable process. They are also subject to the professional regulation by the Law Society of Singapore.

Q: What should I do if debt collection agencies harass me?

A: If you feel threatened or afraid, immediately call the police. Debt collection agencies have no special powers and must abide by the same laws as everyone else. Engaging a law firm for your debt recovery legal needs can prevent such unfortunate scenarios.

Q: Can debt collection agencies demand more than what I owe to creditors?

A: No, only the court can make a final decision on the exact amount owed. You are not obligated to pay more than what you owe, and harassment or intimidation by the debt collection agency should be reported to the police. To ensure fair and legal debt recovery, it’s advisable to engage a law firm backed by the Law Society of Singapore and their team of debt recovery lawyers.

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