1. What is debt collection? What is debt recovery?

Debt collection refers to the process of a creditor attempting to collect on debts owed by its customers/debtors. In contrast, debt recovery refers to the process of a third-party attempting to collect money owed to another creditor or business... Basically, both terms involve the creditor demanding the debtor to make payment of overdue or past-due amounts as per their contract/agreement or based on the decision of the relevant government authority.

Within the scope of this article, we would like to propose a unified usage of “debt recovery” and “debt recovery services”.

2. Legal measures of debt recovery

There are various effective and legal methods for debt recovery, each with its own advantages and limitations. Therefore, the creditor needs to understand and apply appropriate debt recovery measures to achieve the best results. The following are some of options that can be considered.

• Sending dispatches or formal letters with flexible approaches before raising a dispute: Depending on each partners/customers, situation, and debt amount, appropriate content should be drafted, though, it is important to demonstrate goodwill and a willingness to maintain a positive relationship with the partners/customers during the debt recovery process. Reputable partners/customers who seeking long-term cooperation will be ready to pay any obligations to the creditor in good faith. However, in cases where you have informed several times but they still refuse to pay, the communication should convey powerful messaging or create substantial pressure to compel them to fulfill their obligations; despite the fact of delivering a firm message, it is important to maintain respect and goodwill towards the debtor.
• Negotiation: This method is prioritized when initiating debt recovery efforts due to its rapid effectiveness and cost savings. With this approach, both parties engage in negotiations to find the most suitable resolution for the debt based on the practical capabilities of each party. To promote partners/customers to pay quickly, the creditor may consider variety of measures such as reducing interest rates, writing off an account, extending debt payment terms, settling debt by goods, etc. However, in order to negotiate effectively, the negotiator must be knowledgeable and have skills in debt recovery, as well as subtlety, flexibility, and a thorough comprehension of the debtor's circumstances and facts.
• Initiating a lawsuit at a competent court or an arbitrator: This is an appropriate solution when dealing with uncooperative, evasive, or stubborn business partners/customers, or when attempting to recover substantial debts. The risk of being sued creates considerable pressure on the business partner/customer, especially if they are still operating normally. One of the primary benefit of this method is the ability to impose temporary emergency measures to prevent the debtor from avoiding their obligations, such as sealing properties, prohibiting property transfers, freezing bank accounts, or prohibiting some members from the debtor's management board from leaving the country… This method requires the creditor to gather sufficient legal evidence, which takes time and legal cost. Moreover, implementing this plan necessitates knowledge of litigation and legal concerns related to the dispute.

In order to recover the debt immediately after the lawsuit process, the creditor needs to promptly carry out the execution process, tracing properties, and executing the sale of the debtor's assets. The speed and complexity of the enforcement process, as well as the ease or difficulty of executing the sale of the debtor's assets, will depend on the specific circumstances and complexity of each case. This stage requires the creditor to possess knowledge, expertise, and professional skills to ensure effective debt recovery.

• Requesting for declaration of bankruptcy of the debtor enterprise: In cases the debt amount is substantial and the debtor lacks the ability to repay, the creditor should consider filing a request for commencing bankruptcy procedures. The creditor will then have an opportunity (though small) to recover a portion of bad debt by going through the procedure of selling of the debtor's remaining assets through bankruptcy proceedings.
• Hiring a reputable firm providing debt recovery services: In case the creditor lacks deep legal expertise in the field of debt recovery, hiring a reputable firm to recover debt is also a workable solution. These firms have experience, expertise, flexible recovery methods, a clear understanding of procedures, and skills that can effectively help the creditor recover debts in an efficient and legally compliant manner.
• Selling debts to professional and legitimate debt buyers: Selling debts to debt buyers is also one of the neat solutions for debt recovery. The debt buyer may either purchase the entire debt or a part of the debtor's outstanding obligations upfront and they now on bear all the risks of non-recovery. These debt buyer may apply flexibility many of the professional debt handling methods, which can save time and expedite the debt recovery process. However, for the debt buyer to approve the purchase of debts, the debt record must have comprehensive legal document, in addition, the debt purchasing cost might be rather substantial.

You can refer to a reliable and professional debt buyer here: http://pp-mbn.com/

Moreover, the creditor should be particularly cautious not to engage the services of criminal organizations or gangsters for debt recovery because the creditor cannot control in terms of their activities or behavior in debt recovery. If they perform illegal actions against the debtor, the creditors not only carry the risk of not recovering the debt and incurring costs for hiring the gangsters but also face the possibility of being jointly responsible for civil or criminal by being associated with gangsters.

3. What services do debt recovery services in Buon Ma Thuot City offer?

The lawyers at Phong & Partners Law Firm provide debt recovery services in Buon Ma Thuot City with the following scope of work.

a. Counseling on arising issues during the debt recovery process, in particular​

• Counseling, evaluating records and requirements of debt recovery:
• Counseling clients on identifying outstanding debts, determining appropriate measures, applying appropriately professional processes and procedures for debt settlement;
• Counseling on completing legal dossiers to ensure sufficient legal basis for debt recovery;
• Counseling on strategies for clients to handle situations in which the debtor is resistant to pay at any stage;
• Counseling on other related issues arising during the debt recovery process, such as counseling on procedures on resolving disputes related to debt recovery through court/arbitration proceedings;
• Counseling on issues related to court fees and the timeframe for resolution...

b. Drafting relevant documents arising during the debt recovery process:

• Drafting official dispatches, notifications, and related documents to request the debtor to pay the outstanding debt;
• Drafting lawsuit petitions, written opinions, and related documents when suing lawsuits at competent court or at the Commercial Arbitration Center to resolve the debt.
• Drafting a petition for judgment enforcement, verifying requirements for judgment execution to enforce a legally effective decision/judgment;
• Drafting the application of a Temporary restraining orders to prevent the debtor from evading debt obligations or dispersing assets and submit them to the Court/Competent enforcement agencies such as: Application for Temporary restraining orders, Application for distraining the disputed properties, Application for account freeze, Application for exit ban, etc.;
• Drafting complaints when necessary;
• Drafting documents to request the Court, competent authority to declare the bankruptcy of the enterprise;
• Drafting documents to send to the competent criminal investigation if there are indications of criminal offenses;
• Drafting other legal opinion documents to protect the client’s interests at the Court/Arbitration Center and all agencies, organizations, individuals that are involved in the settlement process of the case.

c. Representing and/or participating in protecting legitimate rights and interests of Creditor during the settlement process of the case:

• Representing and/or joining Clients in conciliating and negotiating with the Debtor with gentle measures to avoid conflicts or engaging in strong, forceful negotiations when the debtor does not show willingness to collaborate regarding debt repayment.
• Representing the Creditor to work with competent state agencies, relevant agencies, organizations and individuals to request coordination in the process of settling debt recovery;
• Representing and/or participating in protecting legitimate rights and interests of Creditor at all levels of Courts, competent state agencies, Arbitration Center when a dispute arises;
• Representing the Creditor to participate in the judgment enforcement process to request the judgment enforcement agency to issue a decision to execute the legally effective judgment;
• Representing the Creditor to coordinate with authorities in implementing debt recovery measures, such as distraining the disputed properties, freezing accounts, banning on exit, etc.
• Representing the Creditor to participate in the settlement during the process of requesting the Court or competent state agency to settle the request for declaring bankruptcy of the enterprise;
• Representing the Creditor to participate in the process of police investigation and settlement of criminal complaints.

4. What considerations should be concerned when choosing a debt recovery service in Buon Ma Thuot City?

A dedicated, reputable and professional lawyer providing debt recovery services in Buon Ma Thuot City must have the following important qualities:

• Being ethics and dedication to their work, for the legitimate purposes of the client;
• Being knowledgeable and expertise in debt recovery and related fields.
• Obeying the law when recovering debt and respecting the clients' reputable.
• Should be empathize with the clients and prioritize resolving disputes with goodwill, while minimizing possible conflicts and disagreements.
• Having strong analytical and problem-solving skills to deal with client’s issues quickly and effectively;
• Having profound experience which was gained through education, training, and practical involvement in handling cases at the Courts and/or other procedural agencies.
• Being supported by a well-organized team capable of coordinating with each other to provide optimal solutions for clients.
• Gaining rich life experience and prioritizing professionalism above all else.

5. The process of personal debt recovery in Buon Ma Thuot City

Step 1: Negotiation and discussion with the Debtor in a spirit of goodwill; applying flexibility options and repayment plans to create favorable conditions for the debtor to repay the debt.

Step 2: If the Debtor refuses to cooperate or shows a lack of goodwill, the creditor may choose to:

• Initiate a civil lawsuit to ask for debt repayment.
• File a criminal complaint letter or denunciation shows signs of Abuse of trust to appropriate property; Obtaining property by fraud or other related crimes.

Step 3: Request for judgment enforcement

6. The process of business debt recovery in Buon Ma Thuot City

Step 1: Negotiation and discussion with the Debtor in a spirit of goodwill; applying flexibility  options and repayment plans to create favorable conditions for the debtor to repay the debt.

Step 2: If the Debtor refuses to cooperate or shows a lack of goodwill, the creditor may choose to:

• Initiate a civil lawsuit to ask for debt repayment; or
• Send a petition to request declare bankruptcy of the debtor (their business); or
• Sell the debt to a professional debt buyer, or other flexible methods.

Step 3: Request for judgment enforcement

7. Phong & Partners Law Firm provides comprehensive debt recovery services in Buon Ma Thuot City.

With debts valued at over 2 billion VND, Phong & Partners provides comprehensive debt recovery services in Buon Ma Thuot City with professional quality, prestige, and compliance with the law. We provide a range of specific service packages, including:

a. For undisputed debts: The remuneration to be enjoyed ranges from 30 - 50% of the recovered value, and it is only payable upon successful debt recovery.

b. For disputed debts: The fee structure consists of a fixed fee plus a bonus based on the recovered value.

The fixed fee is paid upon signing the Contract; while the bonus is paid after successful debt recovery.

Remuneration includes fees of counseling, document preparation, verification, representation, working with relevant organizations and individuals, competent state authorities, travel expenses, accommodation expenses, etc. excluding VAT, court fees, judgment enforcement charges, and other administrative fees that the Client is responsible for paying.

8. Phong & Partners Law Firm provides the debt recovery counseling lawyer service in Buon Ma Thuot City in the form of online

a. The convenience when using the debt recovery counseling lawyer service in Buon Ma Thuot City in the form of online

In an era where the Internet has become so popular that it has become an indispensable part of society, connecting with a lawyer no longer necessarily requires a direct visit to the lawyer's office/firm but can be done with just a click (Hotline 0905 503 678). Phong & Partners provides online legal counseling services, offering legal services across the country and even across borders, with the aim of providing the best experience for clients. Here are some conveniences when using the debt recovery counseling lawyer service in Buon Ma Thuot City:

• Save time and effort by eliminating the need to travel to meet the lawyer in person.

• Flexibility in terms of time, including the possibility of receiving consultations outside of working hours.

• Independence from geographical constraints.

• Multiple options and lawyers to consult, which allows the client to find a lawyer with the necessary expertise, experience, and ethics.

• The Client has the right to record or take notes on the lawyer's advice.

• Many family members or personnel within a company can participate in consultation sessions via Zoom or Google Meet.

• All consultation information is kept confidential;

• Clarity in terms of service fees.

b. 5 things to do when using the debt recovery counseling lawyer service in form of online

To ensure quality when requesting the lawyer to consult on debt recovery in Buon Ma Thuot City in form of online, clients should take note of the following:

• Request qualified and experienced lawyers to directly consult – request the service provider to provide complete information of the online counseling lawyers.

• Request lawyers and law-practicing organizations to take responsibility for the counseling content.

• Request the ability to record or capture the entire consultation content.

• Negotiate and agree upfront the fees for online legal counseling services.

• Refuse to receive advice when the consultant is not a lawyer or is not the lawyer registered for the consultation.

c. The online counseling process at Phong & Partners Law Firm

Lawyers of Phong & Partners who provide online debt recovery counseling services in Buon Ma Thuot City are responsible for the content of the consultation, therefore, a fee will be charged when you use our legal services. You need to follow the following procedure:

9. Related questions

1.What to do when the borrower intentionally refuses to repay the debt?

https://www.phong-partners.com/can-lam-gi-khi-nguoi-muon-tien-co-tinh-khong-tra-no

2.Withdrawing capital from the business, a trick to avoid debt repayment obligations!

https://phong-partners.com/rut-von-ra-khoi-doanh-nghiep-chieu-tro-de-tron-tranh-nghia-vu-tra-no  

3.Can a sound recording be considered evidence for debt recovery?

https://www.phong-partners.com/ban-ghi-am-co-duoc-xem-la-chung-cu-de-thu-hoi-no-khong

4.How to apply Temporary restraining orders to recover debt?

https://www.phong-partners.com/ban-ghi-am-co-duoc-xem-la-chung-cu-de-thu-hoi-no-khong

5.You need to obey the law when recovering debts!

https://www.phong-partners.com/can-dung-luat-khi-thu-hoi-no

6.Is it possible to collect debt when the person signing of contract is not authorized?

https://www.phong-partners.com/nguoi-ky-khong-dung-tham-quyen-no-co-doi-duoc-khong

7.How to restore the statute of limitations for debt recovery lawsuits?

https://www.phong-partners.com/lam-the-nao-co-the-khoi-phuc-thoi-hieu-khoi-kien-trong-thu-hoi-no

8.Can debt be recovered without a debt reconciliation statement in a goods purchase transaction?

https://www.phong-partners.com/khong-co-bien-ban-doi-chieu-cong-no-trong-mua-ban-hang-hoa-co-the-thu-hoi-no-duoc-khong

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PHONG & PARTNERS LAW FIRM

Phong & Partners Lawyer in Da Nang City

1. Phong & Partners Law Firm in Hai Chau - Thanh Khe

Address: 6th floor, Thanh Loi Building, 249 Nguyen Van Linh, Thanh Khe district, Da Nang.

Phone: 02363 822 678 - 0905 102 425

2. Phong & Partners Law Firm in Son Tra

Address: 01 Dong Giang, Son Tra district, Da Nang.

Phone: 0905 205 624

3. Phong & Partners Law Firm in Lien Chieu

Address: 21 Truong Van Da, Lien Chieu District, Da Nang.

Phone: 0961 283 093

4. Phong & Partners Law Firm in Ngu Hanh Son

Address: 03 Chu Cam Phong, Ngu Hanh Son District, Da Nang.

Phone: 0905 579 269

5. Phong & Partners Law Firm in Cam Le - Hoa Vang

Address: 346 Cach Mang Thang Tam, Cam Le District, Da Nang.

Phone: 0901 955 099

Email: phongpartnerslaw@gmail.com

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Phong & Partners Lawyer in Ho Chi Minh City
Add: Floor 9, K&M Building, 33 Ung Van Khiem, 25 Ward, Binh Thanh district, Ho Chi Minh City. 
Tel: 0905.102.425
Email: phongpartnerslaw.hcmc@gmail.com