Other difficulties and issues

Even where the debtor has no valid reason there might be circumstances under which it might become difficult to recover the amount legally. For example the debtor might not be solvent enough to pay the amount. Legal recourse would only establish your right at the most, but would not obtain the payment to you. Bankruptcy also prevents collection activities.

The cost of using the services of a collection agency

You must remember that using a collection agency involves payment of fees to the agency itself. Another consideration is the fact that legal proceedings initiated by the collection agency under circumstances similar to the ones outlined above could make your life more difficult and make the collection process long drawn out and of uncertain outcome. Because of this, it is better that you retain control over this process and over the decision as to if and when to proceed legally.

When you have security

If you possess a collateral security, it is best not to proceed legally or engage a collection agency if you can use the security to recover your amount.

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