If your company/you are unfortunate to have been pitched against bad debt that seems unrecoverable, you must be facing immeasurable anxiety and at the same time looking for a recoverable solution.
Under such circumstances, it is best to opt for the most effective solution and that can be ascertained only if you are aware of the various remedies available to you.
A professional recovery agency or legal consultancy firm can be the best bet for fast recovery of bad debt as it tries all options available. At first, it tries to mediate between the creditor and the debtor, striving to bring about an amicable solution. Well trained professionals are put into this work who approach the defaulter and try to persuade him to repay or may have to face legalities.
As the problem of bad debt is growing, many agents and agencies claiming to be authentic, have mushroomed. Most of them depend on muscle power and take the illegal route to coax the defaulter in repaying the debt. Hiring such agencies may land you into legal trouble.
The first logical step towards recovery is to present an LBA to the defaulter. LBA is a formal letter that is sent to the debtor from the creditor or his authorized representative; containing all the details of the debt that is to be covered and a request for the payment of the same.
Such a letter is drafted professionally as all details pertaining to the amount or services, relevant dates, etc. are to be mentioned. It is a final warning to the debtor and if no positive response is received, then the creditor can initiate legal proceedings against the debtor.