Is Using Auckland Debt Collection Lawyers To Collect Bad Debts A Good Idea?
If someone owes you money, and they are refusing to repay, you have limited options available. You may want to hire one of the Auckland debt collection lawyers. With a lawyer at your side, you’ll be able to take the person to court. There is a high chance that the courts will rule in your favour.
With that said, using a lawyer to collect bad debts has drawbacks. Read on to learn about the advantages and disadvantages of working with debt collection lawyers.
You Will Have To Pay Legal Fees
When you hire a lawyer, you are going to have to pay them. The legal fees that you pay may become bigger, or a significant proportion of the the money that you are claiming.
Having said that, there are a few steps you can take that will make it easier for you to collect what you are owed. If multiple people owe you debts, you can have a lawyer help you collect all of them. Beyond that, the mere threat of a suit may convince some people that they need to pay up. This is a very common yet low-cost outcome. The price of a single letter from a solicitor is often enough to convince people to settle your bill.
You Will Almost Certainly Win Your Case
If someone borrowed money or credit from you, and they failed to pay back the money they were lent, then the courts should rule in your favour. As long as you work with a skilled lawyer, you should win your case with ease.
If someone signed a contract, then your case is much stronger, although it does of course depend on the wording of the contract. If your lawyer threatens to go to court over a bad debt, the other party will either pay up or seek advice from their own lawyer. If your contract is well-worded, then their lawyer will probably advise them to settle.
You May Not Get Your Money Right Away
Even if you win your case, you aren’t going to be guaranteed to get the money you’re owed right away. While the courts can order someone to pay you a sum, they have limited options in how they can collect.
If the amount you are owed is quite large, it is likely that it will be paid to you in instalments. The courts may seize the wages of the debtor if they fail to pay you back in a timely manner. If the debtor does not have a job, however, there will be no wages to seize.
Going to court can help you to receive the money you are owed, but it is not a guarantee. There is still a chance that you will not see a single cent of that money. It’s a good idea to talk this over with your lawyer before you move forward with the case. Discuss your options and decide what the best course of action would be. You should be able to bring things to a satisfying resolution.
Is it a good idea to use a lawyer to collect bad debts? Ultimately, that depends on your circumstances. Still, it can’t hurt to talk to Auckland debt collection lawyers about your situation. Get in touch with an expert and see what they suggest. You can decide what you want to do from there.