Options for Debt Recovery in Singapore
Looking to get your money back from an individual or a company in Singapore through debt recovery legal process? When you have tried all the options with no result, you are left with no option but to consult your available options with debt collection in Singapore law.
In this situation, you would need help from a debt collection lawyer or a law firm for debt recovery in Singapore.
Before you go further with debt recovery legal process, it would be extremely beneficial to read possible ways of recovering money and understand your options. In this article, we will be discussing the debt collection Singapore law along with possible legal action as a final option at an affordable cost. We have also discussed how a professional debt recovery lawyer can help you in the process of recovering a debt.
Speak or write to the debtor
As the first step, you should talk to your debtor politely. Sometimes, a debtor has an intention to pay back but can’t due to certain unavoidable circumstances. You can discuss and come to a solution that can be mutually beneficial.
The other thing you can do is to send written reminders when it is not possible to speak personally. There can be more than one reminders and you should keep them in your record. When all efforts of debt recovery fail and you start legal action, these reminders will make your claim stronger. Furthermore, when your debtor is a corporate entity, reminders in writing are recommended over verbal reminders.
Note that reminder letters and speaking personally have their own advantages and can be used depending on the situation. There is no rule on which to try first, so you can use one before the other as per your comfort.
Notice with a warning of legal action
If you have tried everything including using the service of a professional mediator, it’s time to send a final notice. It’s called a letter before action (LBA) or letter of demand (LOD) and can be prepared by a law firm in Singapore. The LBA or LOD generally includes the mention of;
- The exact amount to be paid
- A time-frame within which it should be paid
- Possible consequences if the debtor fails to pay within given time-frame
- Debtor’s responsibility for all legal expenses in case of legal proceedings taking place
How we can help
We are a leader in the debt recovery legal process and a highly reputed debt collection Singapore law experts in Singapore. Additionally, we are extremely confident by having a team of well-qualified and experienced debt collection lawyers. Therefore you can count on us while looking for legal help in recovering a debt. No matter if it is an individual debtor or a company, our expert professionals are able to handle them smartly.
Debt Recovery Lawyers
Frequently Asked Questions:
1. Are the processes for personal debt recovery and corporate debt collection the same?
The process for personal debt recovery and corporate debt collection follows the same sequence, but there can be a number of technicalities involved that define the procedure.
Consulting debt recovery lawyers will help you understand your technicalities and determine the procedure in your case.
2. How much can it cost to recover a debt in Singapore legally?
The procedure, time, and charges of a debt recovery case depend on the complexity and technicality of the matter. Typically, a Letter of Demand can cost around S$100, but it is also subject to the size and demands included.
For an accurate estimate, it is best to discuss your case with a debt collection lawyer so he can analyze the requirements of your case.
3. What does a Letter of Demand include, and how can it help?
A letter of demand is a legal document that one party sends to another. It usually contains the demands to pay back the outstanding debt amount or fulfill the contract agreements. It can also include an alternative demand that the other party can fulfill instead of repaying the debt.
Typically, the letter of demand is sent through debt recovery lawyers who will ensure to add all the demands and can help you try to settle the matter outside of the court.
4. Is hiring a debt collection lawyer beneficial?
Having a lawyer can be of great help in many ways. First, the letter of demand can benefit you in court to show your willingness to settle the matter conveniently.
Secondly, a lawyer will help ensure each step you take complies with the law, and you do not do anything that can later be used against you.