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.
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.
After the institution of the case, the court will also notify the debtor on the existence of the case instituted against him or her. The notification from the court will indicate a specific date when both the debtor and the agency are required to make appearance. During the appearance, the agency will be seeking to prove to the court that the debt is overdue while the debtor will be seeking to be given more time to negotiate on the way to pay the creditor.
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.
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.
After the institution of the case, the court will also notify the debtor on the existence of the case instituted against him or her. The notification from the court will indicate a specific date when both the debtor and the agency are required to make appearance. During the appearance, the agency will be seeking to prove to the court that the debt is overdue while the debtor will be seeking to be given more time to negotiate on the way to pay the creditor.
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.
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.
About the Author:
You can visit the website meltonnorcrossandassociates.com for more helpful information about Guideline On The Procedure Used In Oil And Gas Debt Collection
No comments:
Post a Comment