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Amicable collection

Reasons, hampering professional debt collection in the pretrial order are the same as in the court legal order.

Here are some of them:

1) The actual lack of funds and the debtor's property to repay the debt right at the moment,
2) Confidence of the debtor that the creditor will not be able to penalize the debtor’s  actually existing cash and other assets because of the following circumstances:
A) concealing assets (they are de-facto  belong to the debtor , and de- jure – are the property of the third party),
B) personal or administrative resource  of "patrons",
C) Lack of information on the debtor’s location,
D) Long distance, language barriers, etc. (this is the case of international debt collection),
E) other circumstances (laches, lack of documents proving the debt , etc.)

On the basis of this typology, it is clear that there is need to work on two fronts:

For successful debt collection it is necessary, first of all, to extend the vision of conflict and explore the debtor’s communication field. Thus, identifying the circle of persons, due to the influence of whom, the debtor would be likely to pay either voluntarily or not. At the same time, this is working with the motivation (Circumstances and relations are considered which may influence the debtor to pay.  Presuming, that the debtor is willing to save relations rather than loose them.).

Effective tool is to work with the professional and public associations. For example, if the organization is a member of the Chamber of Commerce , it may repay the sums owed under the threat of being punished for breaking the rules of ethics and business practices.

During fair debt collection attention is paid not only to legal and formal relations, but also to economic and informational.

For example, often within the holding company – organizations are legally independent  and are not responsible for the debts of each other, but they are linked economically and on the level of information, so the threat of the loss of reputation  of a company is taken seriously by leadership of such a group, and not the company itself.

We can also recommend a well-established method in the world of pre-trial settlement of the conflict situation. This is  where the creditor, aiming to return the amount of debt , makes decision in conjunction with a bona fide debtor and they develop a way to earn money through one or more transactions. In this case, the debtor is unable to dispose the additional funds that are allocated by the creditor, but is leading the project for the part of the profits, which can cover the debt or part thereof . This method allows you to switch the resources of the debtors to the positive way, rather than spending their time and efforts  for resistance to pressure from the lender.

Collection of accounts receivables is our business for over 7 years