Dragon Law Firm’s Overview on Debt Collection Methods

Famous law firm in debt recovery in Vietnam provides the debt collection services between individuals, organizations … With experience lawyers in debt collection in many years, we will support Clients with effective solutions.

Clients can easy contact to lawyers in debt collection from the famous law firm in Hanoi at debt collection service, Dragon Law’s hotline number 1900.599.979 to get fast, effective methods for more services.

Many people wonder what debt collection or debt recovery is? The nature of debt recovery? How to collect the debt? Dragon Law Firm would like to offer some information in debt collection as follows:

What is Debt Collection? Nature?

Debt collection is the requirement of debtors to pay to their creditors the sums of money, other assets which is due or overdue to pay to the creditors under the contract or the agreement between the creditors and the debtors or according to the decision of the competent authorities.

Meaning of Debt Collection

- Ensure the financial health of enterprises and individuals

- Ensure corporate profits, personal finance

- Determine the survival of the enterprise, the individual and avoid risks in business.

Debt Collection Documents

- Contracts or papers of equivalent value evidencing the right to reclaim debts or records, video recordings ...

- Documents proving that the creditor has fulfilled other obligations before the right to reclaim the debt arises

- Written acknowledgment of debt between the two parties (if any)

- Letters and documents exchanged between creditors and debtors related to debts to be recovered.

Debt Recovery Content

- Determine the value of debts, urge debtors to repay debts and collect debts

- Contact, work with organizations or individuals to collect debt

- Debt recovery procedures and measures to be taken in the debt recovery process

Person in Charge of Debt Collection

- There are many ideas that should appoint a leader who is responsible for debt recovery because this is the person with knowledge, vision who is especially able to decide to handle matters and no need to spend time to report to upper level. In particular, this person will show the equal position with the opposite partner of debt repayment responsibility, then the debt collection will be easier.

- It is also suggested that employees of the debt collection department or otherwise as an accountant, any relevant department, depending on the complexity, value of each debt to choose the appropriate staff. This action will solve the problem of overloading job of the leader with unnecessary incidents.

However, in subjective opinion of the author, Dragon Law Firm recommend to choose the person who is directly interacting with the previous debtors because he/she:

- Understand the case and the debt to be recovered: do not take time to research the file again

- Understand debtors: physiology, personality, habits, interests, do not take time to learn about debtors. Debt recovery efficiency will be higher.

- Avoid giving debtors a sense of coercion, pressure when the debt collector is not a regular interaction.

What to Do to Effectively Recover Debt:

- Learn carefully, evaluate debt recovery records

- Thoroughly examine debtors before proceeding with debt recovery

- To fully perform the obligations of creditors towards debtors in the signed documents

- Choose the right debt collector

- Select the method of debt recovery suitable for each stage

EFFECTIVE DEBT COLLECTION METHODS:

1. Negotiation in Debt Recovery

By all means we should be collect the debt in this stage because if the parties negotiate and successfully negotiated, the parties will continue to maintain good relations, to avoid damage to health, psychological, spirit, help the parties to financial savings, time for other things. The collection of debts by negotiating methods should also follow these steps:

Step 1. Arrange profile, research, evaluate debt profile

Step 2. Searching for information related to debt

Step 3. Find out weaknesses of debtors

Step 4. Develop a plan of debt collection

Step 5. Make plans to collect debts

Step 6. Review and plan the next steps

There are three methods of negotiation which mainly led to the successful recovery of debts:

- Negotiate - emotional approach

- Negotiate - impact method to third party

- Negotiate - pressure method

2. Legal Method of Debt Collection: Lawsuit and Denunciation

Lawsuit: This measure is used when negotiating efforts failed. This measure will result in lost time, effort and finances of both creditors and debt collector, therefore it should be complied the following order:

Step 1: Gather lawsuit

Step 2: Review the case

Step 3: Pay the court fee in advance

Step 4: Notification of case acceptance

Step 5: The self-declaration

Step 6: The right to request the defendant's counterclaim

Step 7: The right to demand the independence of persons with relevant interests and obligations

Step 8: Copy records, documents

Step 9: Reconciliation and trial preparation

Step 10: First instance court

Denunciation: For the method to denounce, this as an extremely effective method is the double-edged sword for the use of this method because if the accusations are correct, the debtors will be dealt the criminal liability that will pay for our debts. However there are cases where after the accusations, the debtors have fled or implementation of the suspension, dissolution or termination of business activities leading to cause difficulties for the implementation of debt collection. There are also cases of failure to understand the rules of law, the accuser will be accused of slander acts or insulting the honor of debtors. This happens more frequently for debtors who are individuals. So to build a plan of debt collection through the high factor we need to perform in the following order:

Step 1: Determine the denunciations

Step 2: Determine where the loan transactions between parties

Step 3: Make denunciation

Step 4: Work with the police where loan transactions placed

Step 5: Request the competent authorities to conduct a blocked account debtors (if any)

Step 6: Join the case as a victim in the case

Step 7: Join negotiations with defendants to reduce damages in order to mitigate the criminal liability for the accused, defendant

With high experience lawyers in debt collection on international sales contracts, prestigious law firm in Hanoi would like to bring the best legal services to the companies in commercial disputes.

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Dragon Law Firm - Hotline: 1900.599.979

Email: dragonlawfirm@gmail.com

Website: www.dragonlaw.vn

Facebook: https://www.facebook.com/vanphongluatsudragon

HQ: FL14.6, VIMECO Bldg, Lot E9, Pham Hung Str., Trung Hoa Ward, Cau Giay Dist., Hanoi

Office: FL4.6, Khanh Hoi Bldg, Lot 2/3C, Le Hong Phong Str., Ngo Quyen Dist., Hai Phong