You should apply to the court to collect the debt. Before that, it is better to write a letter of demand to the debtor. Even if the loan agreement was drawn up verbally, you must attach all the evidence of the transaction. Difficulties can arise here. For example, it will be necessary to prove that the correspondence was conducted precisely between the lender and the borrower, which is sometimes difficult if accounts with nicknames were used. Making use of the Debt Collection Agency London service happens to be essential when it becomes too complicated for you.
If the debt is less than 50 thousand, then you should contact the magistrate at the debtor’s registration address. The decision will depend on how well the plaintiff gathers evidence.
Debt collection methods
Collection through bailiffs
In case of a positive decision of the court on the return of the debt, the enforcement action will go to the Federal Bailiff Service, whose employees will send a summons to the debtor. You can also contact the FSSP at the place of residence of the borrower and declare enforcement proceedings (IP). To do this, you need to find out the debtor’s place of work and the bank that he uses. The service will open an individual entrepreneur in three days, after which it can proceed to the compulsory withdrawal of funds the arrest of accounts, inventory of property, etc. The debt is allowed to be collected within three years after the presentation of the writ of execution issued by the court.
Referring to collectors
According to the law “On Microfinance Activities and Microfinance Organizations”, the creditor can use the services of collectors from the state register, which is maintained. Only they have the right to deal with debt collection. Also, according to the law, the sale of debts is available to each lender if he has a correctly drawn up agreement confirming the fact of borrowing money.
Collection with the help of lawyers
Lawyers provide services for the collection of debts from individuals, giving advice, helping to resolve the dispute out of court. You can contact them for competent paperwork and drawing up a claim. As a rule, a specialist provides a full range of services necessary for the actual collection of debt. It also includes:
- collection of evidence base
- development of a legal position
- negotiating debt repayment
- representation in court, etc.
How to repay a debt on your own
First, you should start negotiations with the debtor and find out why the person does not return the money. You can also ask him to repay the debt in installments. If this did not work, and the debtor stopped communicating, but there is no receipt, then you need to contact the police, where he will have to write an explanatory note acknowledging the fact of the loan of money. Next, you need to go to court. The same should be done with arrears under the loan agreement. From the Debt Collectors London service now you can expect the best.
Debt collection procedure from individuals
Initiation of enforcement proceedings
After the court ruled that the borrower must repay the debt, the bailiff initiates enforcement proceedings on the basis of a writ of execution at the request of the claimant. After that, he informs both the lender and the borrower about the opening of the individual entrepreneur. After 5 days, the employees begin a compulsory withdrawal of funds, that is, they seize the accounts and property of the debtor. Enforcement proceedings are closed if the debt cannot be collected. In this case, the writ of execution is returned to the claimant, and after 6 months he can reapply.