Sometimes business owners in Hong Kong are faced with the unpleasant situation of not receiving their due payments for the performed services. While clients may struggle financially or may have other reasons to avoid payments, the most common way to deal with unpaid invoices is to request the services of a professional debt collection agency in Hong Kong.
Our law firm in Hong Kong offers local debt recovery services as well as international debt recovery services. Each debt case is different and our professionals will work closely with you to ensure that you receive your payments.
Amicable debt recovery in Hong Kong
The first step in every debt collection process in Hong Kong is the amicable phase. Also known as pre-legal debt collection, during this phase the negotiator will send one or more notice letters (summons) to the debtor in an attempt to convince him or her to pay the due debts.
In order to be able to understand the reasons that have led to the accumulation of debts, our debt collection agents in Hong Kong will need the contact information for the debtor as well as any relevant documents that attest the relationship between you or your company and the debtor. Included in this category are any previous invoices, contracts, agreements and others.
Our Hong Kong law firm is able to provide the adequate pre-legal debt collection services if you have a branch in Hong Kong that has due payments from other clients or if your company in Hong Kong needs international debt collection services. This pre-legal phase is often preferred by many businesses in Hong Kong because it is an alternative to the legal proceedings that can help maintain the business relation with the customer. An expert is able to search for the best solutions to help the client find a repayment option and pay off the outstanding debts to your company.
If the amicable debt recovery fails, we will begin the court debt collection procedure.
Court proceedings for debt collection in Hong Kong
The payment of any outstanding debts should be agreed upon in a contract signed by the parties at the beginning of their business collaboration. The preferred debt collection method or litigation method can also be stated in a contract. The court proceedings for outstanding debt commence with a Writ of Summons. Once this is served to the debtor, he may decide to file a defense.
Our lawyers in Hong Kong can legally represent you in any debt collection case that needs to be solved in court. The Hong Kong legal system is based on the English Common Laws and business claims regarding unpaid debts tend to be settled efficiently. The courts in Hong Kong that deal with the recovery of debts are:
-the Small Claims Tribunal: for sums no larger than 50,000 HK $;
-the District Court: for claims that usually do not exceed 600,000 HK $;
-the High Court: for claims that exceed 600,000 HK $.
Court debt collection will have different associated costs. One of the attorneys at our law firm in Hong Kong can evaluate your case and determine what steps will be necessary and what the estimated costs for court debt collection will amount to.
Our Hong Kong law firm can also help you with bankruptcy proceedings, should the case require such a step. Please contact our Hong Kong attorneys if you want to know more about debt collection in Hong Kong.
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