Debt recovery can be a challenging process when your client suddenly stops communicating after you've completed the work and sent the invoice. In this guide, you'll discover the steps to pursue debt recovery without worrying about duplicated content penalties.
Notification of Unpaid Invoice
If your invoice remains unpaid several days past the due date, it's essential to gently remind your client. Occasions like holidays, spam-filtered emails, or simple accounting errors may be the cause of the delay. Should your initial reminder fail to yield results, send a follow-up reminder. Make it clear that specific actions will be taken if the invoice remains unpaid by a designated date. These actions could include registering the debtor or issuing a pre-action notice. Always provide your client with advanced notice of your intended actions, typically within a 7-day timeframe.
As a convenience, we're currently developing a premium option to automatically send email notifications for due dates or overdue invoices. This feature will save you valuable time with just a few clicks.
Debtor's Disclosure
If multiple reminders go unanswered and the debt remains unpaid, the next step involves disclosing the debtor in the Central Register of Debtors. Being listed in this register can have a negative impact on a business's reputation. Inform the client that you're on the verge of taking this action, as this often prompts a prompt settlement of the outstanding invoice.
Pre-Suit Notice
Before initiating legal action, it's important to send a pre-suit notice. This notice should be sent by registered mail or data mail at least 7 days prior to commencing the legal action. In cases involving multiple debtors, each debtor should receive the pre-suit notice.
The pre-suit notice must include the following details:
The total debt amount
Identification of both the debtor and the creditor
A description of the circumstances leading to the debt
A formal request for payment
A clear indication of your intent to pursue the debt in court
The date and signature (of the creditor or their legal representative)
Filing a Lawsuit
As previously stated in the pre-suit notice, failing to make the payment may result in court proceedings. You have the option to file the action yourself or engage the services of a lawyer.
When filing a lawsuit, ensure that the statement of claim includes the following:
The name of the court to which it is addressed
Identification of the parties involved (plaintiff, defendant, and their legal representatives, if applicable)
The title of the action
A description of the pertinent facts
Evidence to support your claim
The proposed resolution or what you seek as the applicant
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Date and signature
If your lawsuit is substantiated with evidence and correctly filed, the court may issue an order for payment without a formal hearing. However, if the grounds for the decision are not clear, full court proceedings may be initiated. It's important to note that there is a court fee, which typically amounts to 5% of the debt claimed. In the event of a successful lawsuit, the other party is responsible for covering the court fee.
By following these steps, you can navigate the debt recovery process effectively without the risk of duplicate content penalties.
