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There are cases when it is necessary to recover a debt, but there is a nuance: the money was given without a receipt, without a formal contract. Although having a document does not always allow the debtor to pay off debts on time.
Extrajudicial Money Recovery
The first way to recover a debt is direct communication between the creditor and the debtor, to agree on a way to repay the debt without going to court. To get a payment through court, a lot of time, effort, and money will be required. Therefore, creditors have the opportunity to turn to specialists who can help resolve the issue of repayment in a legal way without violating human rights:
- by hiring such a legal specialist, it becomes possible to minimize communication with the debtor;
- the likelihood of a successful resolution of the issue is maximal, as such professionals conduct negotiations at the level of a lawyer;
- you can also
- count on the professionalism of lawyers who will help recover the money in the required amount;
- the process will be much faster than having to go to court.
How to Recover Money Without Court
Before taking the case to court, it is necessary to use all possible means to recover the money. It is essential to communicate with the debtor through communication means (phone calls, SMS messages in messengers) and remind them of the need to repay the debt. Organizing a meeting and discussing the issue to repay the debt with an understanding to resolve the issue. And, if the debtor requests the creation of a payment schedule, it is better to approve it. The debtor is certainly at fault, but their financial situation must be taken into account to allow repayment of the debt through equal payments.
If both parties reach a common resolution of the issue, it will be the easiest and least costly way to recover funds.
Methods of Extrajudicial Settlement
As a result of pretrial settlement, the borrower is informed of the claims and presented with information about possible options for recovering the money. Several methods of extrajudicial settlement are highlighted:
- organize a meeting and negotiate,
- hire a lawyer who will negotiate the repayment,
- conduct correspondence about repayment on social networks and resolve the issue amicably.
It is possible to draft an additional agreement where all the conditions of the return are discussed, taking into account the debtor’s financial situation. If the borrower agrees to them and is ready to fulfill the agreements.
If no contentious issues arise during the debt recovery process, the matter can be resolved even without going to court.
Negotiations for Fund Recovery
The most loyal way to recover funds is negotiations. It is necessary to resolve the issue by discussing the amount of the debt, its repayment parts, and the terms of repayment to satisfy both parties.
Before starting negotiations, it should be understood that everything should be conducted peacefully and calmly, without aggression and accusations. If the debtor provided information about a difficult financial situation, then agreeing to repay the debts in parts would be most beneficial for both parties.
By resolving issues during meetings and discussing them, it is possible to achieve greater success than through court, which can take a long time. And by discussing the issue during this time, the debtor may already be able to settle, and both parties will be satisfied with the resolution of the issue.
Pretrial Settlement of Money Recovery
Demanding a debt in court is, of course, a win-win option that obliges the debtor to repay the debt. Such a process becomes more costly than resolving the issue through pretrial settlement. When going to court, the assistance of lawyers will be required, whose services need to be paid for, plus court fees and expenses will impose a significant financial burden. And this is more expensive and burdensome than agreeing on a personal settlement.
When it was possible to personally agree with the debtor and resolve the issue of debt recovery, this process should be secured by concluding an agreement, which will stipulate the amounts of return and the terms of its repayment. For this, it is enough to draw it up in the presence of a notary or contact a notary office to certify the agreements. Such a procedure will provide guarantees for the return of funds, as long as the borrower adheres to the agreed rules and deadlines.
Amicable Fund Recovery
Recovering funds amicably is the most beneficial option for both parties in the conflict. The debtor will be able to resolve the issue by agreeing to favorable terms if these negotiation results satisfy the lender. Ensuring a peaceful return, the lender understands that they are taking risks by not going to court. But this can be the easiest way to recover one's own funds. After the debtor has returned the amount, the lender is likely not to engage in financial matters with this person anymore and will carefully resolve financial loan issues in the future. If such a necessity arises, it is essential to draw up a contract, certify it notarized for the return of funds.