Stanley & Co Lawyers have developed a 3 step debt recovery process. Each step is individually priced, and we have found that the majority of debts are recovered at Step 1. Our process is proven to be more effective than a commission based debt collector or agency, and does not rely on your administrative staff to chase difficult debts. We also provide you with two additional bonuses:

1. Reviewing your existing terms and conditions; and
2. A detailed creditor’s report on your debtor

Step 1

At the first stage, we meet with you to obtained detailed instructions about the debtor, the debt, and the agreement between the parties. As part of your fee, we will conduct a detailed search into the debtor that will reveal their credit history and other valuable information.

We will then draft and send an initial letter of demand and ensure the Pre-Action Steps under the Uniform Civil Rules 2020 (SA) are complied with. Our demands are tailored to the debtor and require them to repay the outstanding debt, plus any legal fees incurred, within 7 days (for a letter of demand) or 21 days (or Pre-Action Notice).

Once our letter is sent, we will follow up with the debtor by email and telephone, to ensure they have received the demand, are fully aware of the consequence of non-payment and to determine their attitude toward repayment. Most debts are recovered at this stage.

If Stage 1 proves unsuccessful, we move on to Stage 2. This involves issuing a formal notice pursuant to the Court Rules, and may depend on the amount you are trying to recover. It may also depend on the nature of the particular dispute or debt, as certain matters such as building and construction debts require different steps to be taken.

This “Pre-Action Notice” provides the debtor with 21 days to repay the debt or to enter into negotiations with us on your behalf. If the debt is not paid in this time, or the parties have not engaged in good faith negotiation, then you are entitled to file a statement of claim in Court, and potential recover a part of your legal fees which you have incurred in chasing the debt (depending on your terms and conditions or any agreement with the debtor).

Most of the time, the threat of legal action is enough to bring a debtor to their senses and pay the debt.

If, at the end of the 21-day period, the debt is still unpaid, we will draft and issue a Statement of Claim in the relevant Court to start court action to recover the debt. The Court will be made aware of previous attempts to settle the matter and your costs of filing your claim and a portion of your legal fees can be added to the total debt.

If the debtor fails to pay the debt or lodge a defence within 28 days of receiving the claim, you can apply for default judgment. Once you have judgment, then you can start enforcement proceedings to recover the debt.

There are many enforcement options, including forcing the sale of the debtor’s property, or depending on the amount of the debt, bankruptcy or winding up of the company. We can offer individualised advice for the best method of enforcement for your specific matter.