Debt Recovery Lawyers in Singapore

In many debt recovery cases, debtors fail to pay not because they do not wish to but because of their insufficient financial resources to meet all their many existing financial commitments. Hence, they will have to choose whom they should pay first.

To enhance the likelihood of successful recovery, it is important to have a basic understanding of the debt recovery process. There are generally 3 parts to this:

1. Getting to know your debtor
2. Court judgment for the debt
3. Enforcement of the court judgment

Find experienced debt recovery lawyers on our platform.

Getting to Know Your Debtors

Firstly, you have to know whom the debtor is to decide on the best method for debt collection. Is the debtor an individual or a company? What assets does the debtor have in Singapore? What are the financial circumstances of the debtor?

In the event where the debtor is an individual that simply has no money and no assets to pay you with, it may not be advisable to begin a legal process. A soft approach using peer pressure may be taken, especially if the debtor is a friend or relative. In such situations, negotiating a payment plan may be more cost effective.

In other situations, it may be better to get a court judgment first so that you can collect your debt whenever the debtor’s financial situation becomes better, subject to limitation periods. Bankruptcy and winding up petitions are also options at your disposal.

Preliminary Overview of the Court Processes

Some of the court processes include evidentiary requirements to substantiate claims, procedural timelines, and enforcement options.

The court processes begin with getting an Order of the Tribunal or a court judgment.

If the debt owed is up to $20,000, your best recourse would be to file a claim with the Small Claims Tribunals. This is for a case that falls under the Small Claims Tribunals’ jurisdiction. The claim limit can be increased to $30,000 if the debtor agrees to bring the matter to the Small Claims Tribunals.

On the other hand, if the debt owed is more than $30,000, or if your claim does not fall under the Small Claims Tribunals, you will need to file a civil claim with the courts.

What Your Debt Recovery Lawyer Can Do for You

It is always preferable to get the advice of a lawyer. They can advise you on whether pursuing the matter through civil court or a collection agency is economically viable. Furthermore, some debtors feel more pressurised to pay up when receiving demand letters written with legal stationaries because they would wish to avoid legal proceedings.

A good lawyer will also be willing to invest time in assessing the debtor’s financial circumstances (e.g. assets available for attachment/their anticipated income from their trade debtors/sensitivity to bankruptcy proceedings).

What to Look Out for in Your Debt Recovery Lawyer

Successful collection is mainly realised through skilful employment of effective techniques. Thus, hiring a debt recovery lawyer with experience in dealing with debtors of similar profiles is likely to go a long way towards recovering your debt.

To increase your chances of debt recovery, a lawyer who knows how to skilfully employ tactics that have been tried and tested, namely, profiling your debtor to determine your chances of recovering your debt (for example, their concerns about adverse publicity brought about by debt litigation), and applying persuasive techniques and positive pressure.

A lawyer who has litigation experience is also a bonus.

Find experienced debt recovery lawyers on our platform.