Hard collection is a term used to describe the collection of amounts owed by means of legal action, therefore by issuing either a summons or liquidation/ sequestration application. This process is implemented after soft collection attempts have failed and there are no prospects of payment being made of the debtor’s own volition.
Once the matter is handed over for hard collection the process is initiated by drafting and issue of the summons in preparation of service thereof on the debtor. The letter of demand is usually sent to the debtor during the soft collection phase in order to expedite the matter.
This letter affords the debtor 10 weekdays to respond, failing which formal legal action is instituted.The process and steps utilized is fully set out below in our FAQ’s and Steps Followed in Legal Action
Hard Collections Questions
1. What is a Summons?
The Summons and particulars of claim are combined into one document called the Combined Summons. In the particulars of claim, the Plaintiff sets out its claim, which includes the cause of action and amount due, among other information.
2. How does service of the Summons work?
3. What is a Notice of Intention to Defend?
4. What is Summary Judgment?
5. What is a Request for Default Judgment?
6. What are the effects of a Judgment on a person or entity’s credit record?
7. What are the effects of a Judgment?
8. What is a Warrant?
9. What if the Defendant has no or insufficient movable assets to attach and sell?
10. What does it cost to collect a debt by means of legal action?
11. What is the approximate time frame of the process, start to finish?
Steps taken in Legal Action, undefended:
Letter of Demand sent in terms of the relevant legislation is sent to the Debtor;