Approaching the court becomes necessary at the point where it is no longer possible to recover the debt through phone calls, or written documents sent to the debtor and the debt collection legal process starts. There was seen a recent decline in the number of claims forms issued between 1998-2004. But with the recent report the graph started to see an upward trend again. To make sure court action is the right course of action to be undertaken or not, one needs to consider certain points-The primary concern is to think about the costs that you could incur in the process. The amount whether small or big must be given same deliberation.
Think twice before taking court action. It costs less for smaller debts and so is the risk. And more with higher balances.
Ensure that you have tried everything you can at the pre legal stage to recover debt and debtor details that will be invaluable in making your decisions.
Try to negotiate a mutual beneficial settlement with the consumer. Consider the long term value of the ongoing relationship and don’t take a short term view just to recover your money.
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