Commercial Debt Recovery Lawyer - Corporate Business Law - Canada
Obtaining judgement against a debtor who has not paid a bill is usually the easy part of the job for a lawyer dealing with debt recovery. Collecting the money owed is the difficult part and in many cases is impossible. Debtors can disappear, go to a different jurisdiction, become impecunious or declare bankruptcy in a court of law so that their remaining assets can’t be touched by a judgement for debt within the Canadian court system. Speed is of the essence when it comes to the way in which a debt recovery lawyer works; delay only makes it more difficult if not impossible to recover money owed. The initial job of a debt collection lawyer is to get a judgement in a court of law against a debtor who owes a sum of money to the business and to get the judgement enforced so that the company gets paid.
There can be delays in taking legal action on the part of the creditor and subsequent delays in collecting the debt by an inadequate law firm. A debt collection lawyer should work quickly and with no delay. The lawyer should know the tricks of the trade necessary to get summary judgement followed by effective enforcement. If a defendant has disappeared, a lawyer should hire a private detective so that the person can be found.
Not every debt solution will be successful. The debt recovery lawyer needs to look at each case individually and decide how best to approach the matter to force the debtor to pay. The lawyer can obtain judgement and can seize the debtor’s goods and sell them at auction if there are any worth having. The lawyer can make the debtor bankrupt or can wind up the company that the debtor owns both of which are risky and may only result in a small percentage recovery. The lawyer can instigate a public examination at which the debtor’s belongings are assessed. If the debtor is in employment then wages or other income can be garnished and the debt taken by instalments as approved by a judge. If the debtor owns land, the debt recovery lawyer can register a lien or caveat on that piece of land prior to obtaining a court order for sale. Debt recovery is often complex and may require several areas of expertise. Many law firms make use of a multidisciplinary team that works together to handle the different disciplines involved in collecting debt.