Debt collection must be done in a given way as required by the law. Special agencies are normally used in recovering oil and gas debt collection. The agency is contacted by the creditors so that they recover the debt from the debtors on behalf of the creditors. It is worth noting that the agency normally recovers their fees for conducting the job after the debt is paid back.
The first step is the initial notice. Once the period for paying the debt is overdue, the creditor will notify the agency to assist in the collection. The first thing the agency will do is to notify the debtors that the debt they owe to the creditor is overdue and they should pay immediately, failure to which, a legal action will be instituted against them.
The notice will also inform the debtor on the period of time within which the dues is to be paid, failure to which they will be taken to court. It is a requirement of the law that the notice must be communicated to the debtor in writing in order to avoid any loophole where they may claim that they were not notified of then intention to take them to court.
After the lapse of time as provided with the agency, the agency will then go to court and institute a case against the debtor. An attorney with experience in debt recovery is normally used.
The agency must prove to the court that the debt is due and the debtor has refused to pay yet he or she is in a position to pay. The debtor on the other hand must prove to the court that they are not in apposition to pay hence they are pleading for more time within which to pay.
In case the debtor fails to make appearance in court, he or she will automatically lose the case and will be required to pay for the debts as well as the cost incurred in the court. After hearing both sides, the court will be required to make a decision. After the decision is made, any party who is not happy with the decision may appeal so that the decision may be reviewed. In most of the cases, the debtor will be given a grace period to make the payment.
In a situation where the debtor fails to come to court even after being notified, the judge responsible for the case will go ahead and make the judgment. The judgment will be against the debtor and he or she will be required to carter for all the cost. The decision of the court after hearing from both parties will be final, although any of the party has a right to appeal against the decision of the court.
All the property of the debtor which are seized or the account is only taken to the extent of the debt they owe the creditor. If there is any excess of the money recovered, the debtor must be refunded back to the debtor. These are some of the guidelines on the steps used in oil and gas debt collection.
The first step is the initial notice. Once the period for paying the debt is overdue, the creditor will notify the agency to assist in the collection. The first thing the agency will do is to notify the debtors that the debt they owe to the creditor is overdue and they should pay immediately, failure to which, a legal action will be instituted against them.
The notice will also inform the debtor on the period of time within which the dues is to be paid, failure to which they will be taken to court. It is a requirement of the law that the notice must be communicated to the debtor in writing in order to avoid any loophole where they may claim that they were not notified of then intention to take them to court.
After the lapse of time as provided with the agency, the agency will then go to court and institute a case against the debtor. An attorney with experience in debt recovery is normally used.
The agency must prove to the court that the debt is due and the debtor has refused to pay yet he or she is in a position to pay. The debtor on the other hand must prove to the court that they are not in apposition to pay hence they are pleading for more time within which to pay.
In case the debtor fails to make appearance in court, he or she will automatically lose the case and will be required to pay for the debts as well as the cost incurred in the court. After hearing both sides, the court will be required to make a decision. After the decision is made, any party who is not happy with the decision may appeal so that the decision may be reviewed. In most of the cases, the debtor will be given a grace period to make the payment.
In a situation where the debtor fails to come to court even after being notified, the judge responsible for the case will go ahead and make the judgment. The judgment will be against the debtor and he or she will be required to carter for all the cost. The decision of the court after hearing from both parties will be final, although any of the party has a right to appeal against the decision of the court.
All the property of the debtor which are seized or the account is only taken to the extent of the debt they owe the creditor. If there is any excess of the money recovered, the debtor must be refunded back to the debtor. These are some of the guidelines on the steps used in oil and gas debt collection.
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