Debt Collection or Legal Action: Which is Better?

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Debt Collection or Legal Action: Which is Better?

Debt Collection or Legal Action: Which is Better?
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by Katherine Hymer

At Debt Recoveries Australia, we collect debts on a commission-only basis. If we are not successful, we will discuss with our client the pros and cons of going legal. If we and the client decide that legal action is the right choice, we then move the case to our legal team, ADC Legal, to recover unpaid debts.

This article outlines the benefits of hiring a debt collection company versus hiring a lawyer plus the benefits of having debt collectors and lawyers in the same company working closely with your case.

Are you hiring a Debt Collection company?

Debt collecting companies specialize in recovering unpaid debts. Our job description is in the title. It’s as simple as that.

Not only are debt collecting companies more familiar with the ins and outs of what action needs to be taken to successfully retrieve unpaid debts, but we also embody an authoritative tone that will act for you to persistently pursue debts.

At Debt Recoveries Australia, we have been exposed to a whole array of debtors, and with this familiarity, we have a number of ways to make a recovery from different types of debtors.

Here are the key benefits of a debt collector over a lawyer:

  • No win no fee – if this does not apply, find another debt collecting agency
  • Debt collectors working for a commission have an incentive to collect money, whereas lawyers cannot charge a commission, so may not be as motivated to collect the debt
  • Specialist collectors have the resources and knowledge of skip tracing (finding the debtor) and debt negotiation whereas lawyers tend to be generalist providers of legal advice in a range of areas

You can read more about how debt collectors work here.

Are you getting a Lawyer?

Do not hire any old random lawyer. Instead, hire a lawyer who specializes in debt recovery. ADC Legal are specialist debt recovery litigators.

We will work with you to carefully consider whether a debt is economically viable to take to court before proceeding with further legal action.

Our legal team will work with you to decide if legal action is the best action to recover unpaid debts.

Key benefits of a lawyer over a debt collector:

  • Lawyers have the ability to secure the debt by entering a judgment through the courts which debt collectors are unable to do
  • More complex issues may be better handled by a lawyer
  • Contractual disputes are better handled by a lawyer as they have a thorough understanding of legal systems and precedent cases

You can read more about the benefits of using a lawyer to recovery unpaid debts here.

Having everything in the one spot can save you a lot of time and money. You no longer need to worry about the debt, what collection agency to work with, or choose between different lawyers in different states. You can trust that Debt Recoveries Australia and ADC Legal will not only have a strong understanding of your case, but that by keeping it in the one area, this can increase your chance of recovery. We also cover the whole of Australia. Job done!

 

ADC Legal Litigation Lawyers is a legal practice specialising in commercial advice and litigation, debt recovery and insurance claims recovery disputes. For more information, email us at email@adclegal.com.au or call 1300 799 820. You may also Skype us at adclegal.

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