Oil and gas debt collection is always done by debt collecting agencies that are specialized. Creditors normally hire these agencies to assist them in recovering money from the debtors. The agency is only paid after the debt is fully recovered or as per the agreement. This article highlights some of the steps involved in the whole process.
It is advisable that the agency to start the process by way of doing an initial notice. The intention of the notice is inform the debtor on the intention to recover the debt from him or her by use of a special debt collecting agency. In the initial notice, the debtor must be informed of the need to pay the dues in order to avoid being sued. A period of time is given before he or she is sued by the agency.
The notification may be made by way of letter or even email. What is important is that the notification should be made in writing and it must inform the debtor that there is intention to take him or her to court.
If the debtor fails to respond or even fails to enter into agreement with the agency on the way forward, then the next step is to consider institution legal proceedings at the civil court to recover the debt. The agency will hire an attorney to help them in the institution of the proceedings. The court used must be the one with the jurisdiction where the debtor resides in.
The attorney helps in the legal process and legal drafting of the pleadings. It is also necessary to ensure that the court where the case is instituted is having jurisdiction over the debtor. If it is not having such jurisdiction, then the judgment of the court will not apply to the debtor.
In circumstance where the debtor refuses to come to court and to defend the suit, judgment will still be entered against him or her. It is always advisable that they present themselves to court and to defend the suit. The court may rule in their favor and they may be given more time. Even if the judgement is against the debtor, they still have a right to appeal in a higher court so that it may be reviewed.
In a situation where the debtor still fails to pay, the agency will move the court once again in order to seek for an order of execution. The execution order may involve seizing the accounts of the debtors or any property which they may be having. The other thing may be placing a lien on the real property.
The collection recovery must be done in a professional way. In some situation as the court decides, the debtor may be required to also carter for the cost used in recovering the dues other than the debt they owe. These are some of the advices on the procedure used in oil and gas debt collection.
It is advisable that the agency to start the process by way of doing an initial notice. The intention of the notice is inform the debtor on the intention to recover the debt from him or her by use of a special debt collecting agency. In the initial notice, the debtor must be informed of the need to pay the dues in order to avoid being sued. A period of time is given before he or she is sued by the agency.
The notification may be made by way of letter or even email. What is important is that the notification should be made in writing and it must inform the debtor that there is intention to take him or her to court.
If the debtor fails to respond or even fails to enter into agreement with the agency on the way forward, then the next step is to consider institution legal proceedings at the civil court to recover the debt. The agency will hire an attorney to help them in the institution of the proceedings. The court used must be the one with the jurisdiction where the debtor resides in.
The attorney helps in the legal process and legal drafting of the pleadings. It is also necessary to ensure that the court where the case is instituted is having jurisdiction over the debtor. If it is not having such jurisdiction, then the judgment of the court will not apply to the debtor.
In circumstance where the debtor refuses to come to court and to defend the suit, judgment will still be entered against him or her. It is always advisable that they present themselves to court and to defend the suit. The court may rule in their favor and they may be given more time. Even if the judgement is against the debtor, they still have a right to appeal in a higher court so that it may be reviewed.
In a situation where the debtor still fails to pay, the agency will move the court once again in order to seek for an order of execution. The execution order may involve seizing the accounts of the debtors or any property which they may be having. The other thing may be placing a lien on the real property.
The collection recovery must be done in a professional way. In some situation as the court decides, the debtor may be required to also carter for the cost used in recovering the dues other than the debt they owe. These are some of the advices on the procedure used in oil and gas debt collection.
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