Claiming for a debt you are owed

Many people when owed a debt will just ‘let it slide’ as they think the legal system can’t help them or if it can that the costs outweigh the benefit.

There are steps that must be taken when claiming for a debt owed by someone to you.

For example, under the Uniform Civil Rules 2020, you must put a party on notice of the debt before suing them.

In some cases, a legal letter can force a party to repay a debt without the need to enter into the court process.

It can also often begin the negotiation process.

We have been successful in securing monies owed to many of our clients at this stage.

It is important to know that you don’t need a written contract for a loan to be able to sue for a debt. A verbal agreement to repay is enough.

The Magistrates Court of SA has various jurisdictions dealing with debts.

Minor Civil debts are $12000 and under.

Debts of between $12000 and $100000 are heard in the Court’s General Jurisdiction.

The processes in each case are slightly different so it is important to seek legal advice.

If successful in your claim, part of your legal costs are paid by the other party who owed you monies.

The Court offers rocesses for the enforcement of debt once judgment is obtained against a debtor.

Judgment for debt also affects a party’s credit rating so it can be a very powerful tool.

Please call us for advice in relation to any debt related matters.