A debtor says they have no money, what do I do?

The first thing you must consider is the size of the debt. The options you have to pursue the debt will cost you money and therefore you must decide whether it is worth pursuing. If you determine that recouping the funds is a priority, a reputable debt collection agency will be able to assist you.

The collections agency has a range of options:

  • they can negotiate with the debtor to initiate a payment plan, allowing the debt to be paid off over an agreed period of time; or
  • they can seek to determine whether the debtor has assets that could be used to cover the debt.

If the debtor does have assets that could be used to cover the debt you may decide to pursue your outstanding money through the courts. However you need to be careful to ensure that your financial interest in the debt is protected by seeking advice regarding the viability of pursuing a debtor through litigation.

And finally, ensure that you seek good advice on your specific situation - otherwise you will waste precious time and money that could be better spent in other areas of your business.

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