What Makes Debt Collection Perfect? Here Is the Option You Need

    It is good when unscrupulous and insolvent counterparties are eliminated even at the stage of concluding a contract. If the situation is different and you still contact the debtor who refuses to return the money or does it slowly and reluctantly, then you should try negotiations, restructuring and interim measures. Maybe even bankruptcy.

    When the court decides to recover the debt, the creditor receives a writ of execution and applies to the bailiff service. This is effective if the debtor has property. But often debtors withdraw valuable assets in advance. For example, a debtor logistics company received a claim for payment of a debt, and three weeks later ceded its receivables with the condition of payment by installments for 4.5 years to an organization that was created a few days before the signing of the contract. The court recognized the actions of the debtor aimed at concealing the property from collection by the creditor. The asset was returned. At his expense, it was possible to pay off most of the debt. Choosing the debt collection agency nottingham service is important there.

    When it comes to collecting a debt, the creditor has three options:

    Return the debtor’s assets deliberately hidden from third parties, and for this to challenge the transaction.

    In court, the creditor must justify the violation of his legitimate interests through the possibility of collecting assets: if this transaction had not taken place, he would have received his money at the expense of the subject of the transaction. Additional arguments may be: sale of property at a reduced cost (from 30% below market value) or with a significant payment by installments (for a year or more), concluding a transaction with a person who knows about accounts payable, etc.

    If the creditor knows the objects that belonged to the debtor, he can find out about the withdrawal of property from the information, and about the alienation of shares – in the open USRLE. Information about transactions may also appear in judicial acts with the participation of the debtor or become known from general counterparties. Here is the option for getting the debt back with debt collectors nottingham  service.

    • The production company owes the bank over 100 million dollars. The creditor learned that his debtor had sold the property to a firm that had been set up shortly before the transaction. Although the bank was negotiating with the debtor to receive this asset as a security pledge,the bank contested the deal. The court decided that it was for the sole purpose of not paying the debt to the creditor.
    • A common mistake of creditors is delaying the filing of an application to contest the transaction. During this time, the asset may be resold, and this will make it difficult or impossible to return it.
    • Challenging the transaction can take from 6 to 24 months and cost the creditor in the amount of 500,000 dollars.

    Initiate bankruptcy of the debtor

    Information about completed transactions is not always available to the lender, and in these cases, you can use other methods. The debtor’s bankruptcy provides important advantages:

    Conclusion

    The bankruptcy petition filed with the court prompts the debtor to eliminate the problem. Often after this, companies voluntarily pay debts to creditors (this is due to the tightening of the rules on bringing controlling persons to subsidiary liability).

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