At a glance
Debt collection means recovering what you are owed by the most effective and least costly route. Karsan first reviews the evidence of the debt (invoice, contract, cheque or promissory note), starts with formal correspondence and negotiation and, where needed, uses judicial tools such as cheque enforcement, attachment orders and asset seizure.
Legal methods of debt collection
The right method depends on the type of document, the amount, the debtor's financial position and how urgent it is:
- Formal notice and negotiation: the fastest and cheapest route with many debtors.
- Bounced cheques: pursuing an enforcement order and identifying and seizing assets.
- Promissory notes and other commercial instruments: timely protest and a payment claim, with the option of an attachment order.
- Payment claims: for debts supported by a contract, invoice or progress statement.
- Arbitration: if the contract has an arbitration clause, commercial arbitration can be faster than court.
Prevention beats collection
Much bad debt traces back to weak contracts. Clear due dates, late-payment penalties, suitable guarantees (security cheques or promissory notes) and a dispute-resolution clause make collection many times faster. Alongside collection, Karsan redesigns your sales and construction contracts.
How Karsan recovers debts
- 1
Document review
Assessing the evidence, limitation periods and chances of recovery.
- 2
Initial formal action
Sending a formal notice and structured negotiation with the debtor.
- 3
Judicial or enforcement action
Enforcement orders, claims, attachment or arbitration, depending on the case.
- 4
Asset tracing and seizure
Tracing and seizing the debtor's assets and accounts.
- 5
Reporting and settlement
Regular progress reports until full recovery or an enforceable agreement.
Frequently asked questions
If the cheque meets the legal conditions for an enforcement order, the enforcement route is usually faster than an ordinary claim. The exact time depends on identifying the debtor's assets.
Yes. Invoices, correspondence, messages, delivery receipts and bank statements can all prove a debt. Karsan reviews the full set of evidence and chooses the strongest route.
Fees depend on the amount, the type of document and the chosen route, and are confirmed in writing before we start. In most cases, legal costs can be claimed from the debtor.