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Difference between revisions of "Collecting on a Debt"
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→Work out the problem
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==Work out the problem== | ==Work out the problem== | ||
If you run into problems collecting on a debt, there are steps you can take. | If you run into problems collecting on a debt, there are steps you can take. | ||
===Step 1. Decide on a course of action=== | |||
Collecting debts can be a pain. As a first step, ask yourself if it’s worth the effort. For example, maybe the debt is very small. Or the debtor is unlikely to be able to repay anything. In either case, it may cost you more time and money to collect than the debt is worth. | |||
=== | ===Step 2. Collect information on the debt=== | ||
You should gather information and documents relating to the debt. These include: | You should gather information and documents relating to the debt. These include: | ||
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The information and documents will help you collect the debt. | The information and documents will help you collect the debt. | ||
===Step 3. Contact the debtor=== | |||
Reach out to the debtor by phone, email or text. Remind them of the debt and ask what they can do to pay it. If the debtor agrees to pay based on a payment schedule, put the agreement in writing. Get them to date and sign it. | Reach out to the debtor by phone, email or text. Remind them of the debt and ask what they can do to pay it. If the debtor agrees to pay based on a payment schedule, put the agreement in writing. Get them to date and sign it. | ||
===Step 4. Send a demand letter=== | |||
A '''demand letter''' is a letter insisting on payment. In it, you can offer payment options that are acceptable to you. For example, payment by credit card or e-transfer. | A '''demand letter''' is a letter insisting on payment. In it, you can offer payment options that are acceptable to you. For example, payment by credit card or e-transfer. | ||
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A template is always a good place to start. [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/template-letters-agreements/loan-demand-letter We have a loan demand letter template]. | A template is always a good place to start. [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/template-letters-agreements/loan-demand-letter We have a loan demand letter template]. | ||
===Step 5. Consider legal action=== | |||
If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC. | If the debtor doesn’t pay, you may want to bring a legal action. You can sue in British Columbia if the debt arose in BC, or if the debtor lives or carries on business in BC. | ||
