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Debt recovery can involve legal costs that may exceed the amount of the debt itself. For this reason, it is often prudent to first engage a lawyer to issue a formal letter of demand before commencing court proceedings.
A letter of demand is sent to the debtor and sets out the basis of the debt, the amount owing, and a deadline for payment, typically within 7 or 14 days of receipt. It also warns that legal proceedings may be commenced if payment is not made.
If the debt remains unpaid, the creditor must then consider whether it is commercially sensible to commence legal proceedings and instruct their lawyers accordingly.
Brooklyn Lawyers assists clients with debt recovery matters and can advise on the most appropriate course of action.