Lexfields uses diverse innovative techniques which are custom made to suit our client’s needs in debt recoveries. We adopt various strategies modelled to fit the character of the debtor and nature of the debt in question, taking into consideration reasons why a debt has gone bad or why there are delays in its payment. At Lexfields we make it a priority to understand the nature of the default and this enables us to recommend the most effective way of recovering the debt.
We often adopt two main approaches using different procedures, that is, non-litigation and litigation. In determining the best approach for a particular brief, we first ascertain the ability of the debtor to pay the debt or whether the debtor has assets which can be attached or liquidated to recover the debt.
i. Non- Litigation
This procedure is mostly done by making demands and constant follow ups to make sure that the debtor pays up the debt due and owing. These demands go with a time line and are usually delivered by legal representatives. In most situations the debtor pays up or if given the opportunity to restructure the terms of payment, the debtor might pay over the agreed period.
a. Writ of Summons
Lexfields might recommend litigation when it is evident that all demands and negotiations have failed to recover the debt and the credit arrangement cannot be enforced under the Borrowers and Lenders Act. It must be noted that the debtor should be capable of paying or have some assets to be attached before litigation will be commenced. The ultimate goal is to recover the debt for our client and not to win a case in court against the debtor.
Litigation has always been the final means of debt recovery but believed to be costly, lengthy, complicated and time consuming. Thus, we always conduct due diligence to ensure that any judgment obtained against the debtor can be enforced. At this point we may rely very much on private investigators where necessary. However, where all alternative measures have been exhausted, we may adopt some aggressive proceedings recognized under the court system, which could possibly provide very swift resolution of such matters.
b. Liquidation Proceedings
When it is determined in our pre-litigation investigation that the debtor is not in the position to pay the debts due and owing or may possibly have other creditors waiting to commence an action against the debtor, who might not be able to pay all its debts, we recommend liquidation proceedings under the Bodies Corporate (Official Liquidations) Act or insolvency proceedings, whichever may be appropriate in the circumstance, to wind up or liquidate the debtor or his business and dispose off any assets which will enable the creditor, when successful, to sell some of the debtors assets to pay for the debt.