Article by: Jesica Barnardo
As most of you know, it is never easy to recover an outstanding debt from an uncooperative debtor, but recovering a debt during a pandemic is unchartered territory and adds a new level of difficulty to the process.
We would all like to believe that the end is in sight but the effects of the pandemic will be far-reaching for some time to come.
However, that does not mean that you are left without hope!
The first step in the process is to send the debtor a letter notifying them of their breach and a blacklisting warning may be included in this notice.
The debtor will in all likelihood respond that he/she is unable to pay due to retrenchment/a decrease in salary/being unable to operate due to lockdown regulations. In this case, certain information must be obtained to verify their financial position.
Thereafter, you will be able to make an informed decision as to whether to proceed with litigation. Obtaining judgment against a debtor is of little practical value if the debtor has no funds or assets to recover the debt. The costs of litigation also becomes an important consideration.
Every cent matters in today’s economic climate. Expert and personalised assistance is only one call away- contact us now.