Debt collection is always difficult. A salesperson who is forced to remind his customers about the debt may lose his reputation, and, as a result, receive smaller orders. A pragmatic company should co-operate with experts instead and use their knowledge, expertise and know-how to increase its chances to recover the debt.
Even a situation when the debtor declares bankruptcy does not completely eradicate the chances to recover the money due. Sometimes debtors hide their property or try to make the impression that they are insolvent, hoping for the creditors to make some concessions. It is definitely recommended to analyse its financial standing and the ownership transfer activities in the preceding months, because sometimes it turns out that the enterprise of the debtor has become the property of a family member. However, this does not eliminate the possibility to recover the debt. Pursuant to the provisions of the Act – Bankruptcy and Composition Law (Art. 127 and subsequent), in certain circumstances, the disposition of assets is ineffective. The entrepreneur may prove in court that transferring the ownership of a company to a family member was a wilful action to the detriment of creditors. The debtor enterprise may also be reported to the Economic Information Bureau (Biuro Informacji Gospodarczej), where its data will be recorded along with the debt, which will definitely hinder further business activity.
However, before we decide to pursue the receivables in court or to report the debtor to the Economic Information Bureau, it is worth trying to settle the case amicably. Debt collection experts are often able to reach a satisfactory solution of such situation. Negotiations with debtors are never easy, but entrusting them to a third party allows to maintain sound distance. Additionally, in most cases the know-how and experience of the debt collector will allow them to settle the case in an amicable way.
Debt collection upon an order means comprehensive handling of the debt collection process on each of the stages: Amicable, court and enforcement. It also means that the likelihood to recover “frozen” funds will be maximised, the staff will not be burdened with debt collection activities and, in some cases, guaranteed on-site debt collection, which is one of the best enforcement methods. As most of the debt collection agencies have already started to work on a success fee basis, we can feel comfortable, because we will not bear any additional costs if the recovery attempts are unsuccessful.
Published on: 9 November 2016