Scenario: You or your company have rendered services or delivered goods in good faith. The debtor has gone missing or blatantly refuses to pay you. What now?
The last stats that were released reveal that up to 40 per cent of South Africans are over-indebted or have negative credit records. This reveals that these citizens have bought goods or received services and have not paid for them. The reasons that payment is not rendered may vary and will not be discussed in detail in this article.
This stat then also shows that more people are owed money than ever before. Debt collection can be a tricky process and is often frustrating when you are not able to recoup your money immediately.
When one is owed money, the first step would be to acquire the services of an attorney who would then act on your behalf in collecting the outstanding amount.
Generally speaking, and assuming you know the whereabouts of the debtor, the first step an attorney takes is to transmit a letter of demand onto the debtor. The content of the letter will depend on the claim.
Should you not know the whereabouts of the debtor, your attorney may employ the services of a tracer in an attempt to trace the debtor.
Should the debtor fail to pay the amount demanded, a summons is generally issued and served on the debtor.
The debtor generally has 10 days to respond to the summons with a notice that they intend to defend the matter.
Should the debtor fail to deliver this notice, the plaintiff would be entitled to apply for judgement against the debtor.
Once judgement is granted, the plaintiff may proceed with the execution of the judgement which may include attaching movable assets, calling the debtor to court for a financial enquiry or several other options.
Various elements will affect the claim. We highly recommend that you consult with an attorney who specialises in debt collection so that the attorney may give you the best chance of collecting your money.
For any further assistance in this regard contact us on 011 897 1900/076 777 1920/info@tuckers.co.za
Article contributed by Kenny Smith of Tuckers Inc.
