Debt Recovery

What is a debt?

A debt is a financial obligation

Why debt recovery?

Debt management is important. It can spell the difference between a failed business and a successful one. This is why some businesses prioritise it to the extent of having debt recovery departments.

Debt recovery process

Here is an overview of a typical sequence of debt collection events:

• (a) Courtesy call or visit to the debtor politely but firmly demanding payment.
• (b) In the event of non-compliance with the aforesaid demand, a letter of demand officially demanding payment by a given date is served on the debtor.
• (c) Should the debtor not pay or enter into a payment with the creditor, a summons is issued at the appropriate court and served on the debtor who has an opportunity to defend the action should they wish to do so.
• (d) If the debtor does not defend the action timeously, an application for default judgment is made.
• (e) Where the debtor enters an appearance to defend in circumstances where they have no defence, an application for summary judgment may be made.
• (f) Once judgment is entered against the debtor, the creditor may cause a writ of execution to be issued for the attachment of the judgment debtor’s movable assets.
• (g) Where there are insufficient movable assets to satisfy the judgment debt, a writ of execution may be issued for the sale of the judgment debtor’s immovable property in satisfaction of the judgment debt.