What are the typical steps in debt recovery Singapore?

What are the typical steps in debt recovery Singapore?

The debt recovery Singapore process is tailored to each individual scenario. Our lawyers will guide you through the appropriate steps as part of your initial consultation, informed by Singapore debt recovery law. Our aim in every case is to support you in recovering the debt, ideally without resorting to court action.

IRB Law Partner Jeremy Cheong provides more insight into the standard debt recovery Singapore process step by step.

Step 1 – Initial Consultation

The first step is to fully comprehend your current situation so we can advise on the next appropriate steps for your debt recovery journey. Feel free to give us a call or drop us an email to discuss your options. This initial consultation is free of charge.

Step 2 – Perform Due Diligence

During this phase, we conduct a detailed evaluation of the debtor. Primarily, we aim to discern if they possess the financial capacity to repay any debt, especially in situations where the Singapore debt recovery law necessitates filing court papers.

Step 3 – Issue a Letter of Demand

This formal document aims to warn the debtor of potential legal action under Singapore debt recovery law if the debt is not paid back. It can be a highly effective tool in promoting a reaction from the debtor, even if that reaction is to start negotiating.

The letter of demand can also be presented in court, allowing us to show that attempts were made to amicably resolve the debt issue before any further action was pursued.

Step 4 – Await Response & Negotiate

We then wait for the debtor to respond to the letter of demand. A time restriction is typically outlined in the letter of demand, advising the debtor of potential further steps if they neglect to respond. In many instances, the debtor will respond, and we will assist our clients throughout any negotiations if the debtor suggests a repayment plan.

Step 5 – Filing Court Papers

Should the letter of demand prove unsuccessful or no mutual agreement on payment terms is reached, we can then file a claim with the relevant court. The type and amount of claim hinge on the path taken.

Step 6 – Enforcement of Court Decision

Following a successful court verdict, the debtor might still fail to pay. In such scenarios, we will advise on the next appropriate steps regarding the enforcement of debt collection under Singapore debt recovery law.

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