Financial Recoveries
OUR ATTORNEYS CAN ADVISE ON DEBT COLLECTION MATTERS LARGE AND SMALL.
Talk to usOur financial recoveries department
Our department consists of seasoned collections expert, Connie Alho, and our litigation team who provide financial recoveries and debt collections services to a variety of clients. Our team has successful experience in a range of matters from municipal debt collections, building industry disputes, retail industry collections, and more.
Statistics show that South Africans spend 63% of their take-home pay to service their debt. With those figures, it is common for creditors to seek efficient debt collectors at early stages of default to ensure maximum recovery.
We offer a range of debt collection services from debtor management to execution of a court order. With experience in both High Court and Magistrates Court debt litigation, our team is equipped to guide you through both large and small debt collections.
Contact us today for an introductory chat, and let’s see how we can help you.
Our financial recoveries services include:
Debt Management
Our clients often request that attorneys become involved early in the debt collection process to manage debtors and their payments. This may consist of regular communications with debtors, fielding negotiations from debtors and enforcing debts outside of litigation.
Letters of Demand
The first step in commencing litigation against a debtor is to send them a letter of demand stating the cause of action and the demands of the creditor for repayment of the debt.
Acknowledgements of Debt
Sometimes, a debtor will not wish to litigate and may be amenable to signing an acknowledgement of debt. This is a legal document stipulating the terms of their debt repayment and upon which they can be sued if they default. This document usually entails that the debtor renounces certain legal benefits otherwise open to them, and affords the creditor an easier method to litigate against the debtor than they otherwise might have.
Litigation
Our team of skilled litigation attorneys will, if necessary, prepare summons against a defaulting debtor for recovery of the debt. We are well located for issuing court processes out the Cape Town High Court, the Regional court and most of the Magistrates courts in the Western Cape without having to instruct a correspondent. We do have a panel of attorneys in all the provinces who we use as correspondents to institute legal action against defaulting debtors.
Execution
After the granting of judgment, we will issue a warrant of execution against the debtor’s movable property. Should this be insufficient to service the debt, a Section 65 financial inquiry may be launched to call the debtor to court to explain why the debt cannot be paid. The court may then grant a court order for monthly instalments or an Emoluments attachment ordering his employer to deduct a portion of the debtor’s salary to service the debt.
Frequently Asked Questions:
When do I need a debt collections attorney?
It is recommended to seek legal advice as soon as a debtor indicates they will default on their debt.
When is a debt too old to collect on?
Debts which are older than 3 years may have prescribed. This means that they are no longer legally enforceable. There are some exceptions to this rule and we recommend seeking legal advice for greater clarity.
What if I don’t have a written contract with the debtor?
While not having a written contract may prove more complicated to your case, a verbal agreement is just as binding as a written agreement and you are able to litigate on the terms thereof.
What happens if the debtor disappears?
If your debtor disappears and you can no longer get hold of them, you may still be able to sue them for their debts. Our team makes use of contacts to trace debtors and if unsuccessful we make use of various tracing agents to trace debtors on a no-trace, no-charge basis.
*Our financial recoveries services are offered in collaboration with our partner firm, Dunsters DGM Inc.