Debt Collection In South Africa Early Tell Tale Signs Of Debtors Unable To Pay Their Debts

All creditors, be they an individual or own a businesses or company, would definitely like to identify and realise when their debtors start showing the signs of not being able to or will not ever pay their debts back. Identifying these early signs will enable the creditor to start debt collection and debt recovery proceedings as early as possible in order to reach a successful conclusion where that money that is owed to the creditor is paid back by each of their respective debtors. This will make the process and success rate of debt collection in South Africa more effective and hopefully more successful. Ivan Zartz, a debt collection debt recovery attorney in Johannesburg South Africa, has over the last twenty five years identified the early warning signs that creditors should look out for from their debtors indicating that their debtors will not be paying back the money that is owed to them.

As far as the law is concerned a company, business or legally registered commercial concern is deemed not able to pay back their respective debts to their creditors, once a letter of demand has been sent to the registered office of the company or close corporation demanding payment of that specific debt. The letter to this the registered office of the company or close corporation must be officially served to that office, company or closed corporation, by a legally appointed sheriff. Once more than twenty one days have passed from the date that the office, company or closed corporation received that letter in person from the sheriff and no subsequent payment by the debtor to the creditor has been received by the creditor, then it is seen as a non payment of debt. Another legal instance that a company, business or legally registered commercial concern is deemed not able to pay back their respective debts to their creditors, is when there is a written or oral admission by a representative of the related company’s finance credit department of the debtor that the company is unable to pay, as a result of the business or legally registered commercial concern having cash flow problems.

Some of the tell tales signs that debtors will not be able to pay their debts back are as follows. They are waiting for a large amount of money to be paid to them from a certain company before they can repay the debt. They are unable to pay the debt because they are receiving no payments from certain companies that they do business with. They are unable to pay because business is bad and their directors are trying to get the respective money from a bank or a third party. Creditors must realise that they should make detailed notes of any of the above reasons received from any of their debtors and confirm them in writing, especially if such notification from the debtor has been received telephonically.

Visit http://ivanzartzattorneys.co.za/debt-collection/ to contact him and his attorneys in Johannesburg to solve your debt collection recovery matters.

To learn more about the legal assistance provided by attorney Ivan Zartz in Johannesburg concerning debt collection and debt recovery visit this link Debt Collection Recovery Collectors South Africa.