Consulting on debt recovery

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Debt recovery consultation is a service developed to assist creditors in overcoming difficulties in debt collection. The possibility of recovering loans depends significantly on the choice of debt recovery methods. This is also a challenge for creditors in debt collection. Recognizing this difficulty, Long Phan will provide customers with specific information on this issue in the following article.

Debt recovery consultation OptionsDebt recovery consultation Options

Summary of debt recovery methods

Debt recovery involves the action of a creditor demanding repayment from a debtor of the principal amount plus interest due as per the agreement between the creditor and the debtor. The reality of debt recovery is challenging, with many debtors lacking the intention to pay on time or attempting to evade repayment, leading to frustrations for creditors. This situation can lead to illegal actions by creditors in their efforts to recover debts, causing societal disorder.

To ensure effective and lawful debt recovery, it’s crucial to choose the right recovery method for each type of debt and debtor. Currently, effective and legally compliant debt recovery methods include:

  • First, Negotiation and Bargaining

This method requires negotiation skills to psychologically and emotionally influence the debtor. Preparation for negotiation involves planning the content and engaging with the debtor to understand their mindset. The main goal is to make the debtor realize the disadvantages and threats to their reputation.

  • Second, Using Debt Recovery Services

Legal debt recovery services are recognized as a lawful method. Professional debt recovery teams use legal and effective strategies to demand repayment according to the agreement.

  • Third, Debt Buying and Selling

This involves an agreement where the right to collect a debt arising from lending is sold to another party, who then pays the original creditor. This legal activity allows individuals and businesses with hard-to-collect debts to sell these rights to legal debt purchasing companies. The transaction is regulated and contractually based.

  • Fourth, Legal Proceedings

For debts that cannot be efficiently recovered through negotiation, creditors should resort to legal action. This involves suing the debtor to enforce repayment as agreed. For debtors suspected of fraud or other criminal activities related to the debt, reporting these actions can be a legally binding solution for the debtor.

These methods outline the various strategies creditors can employ to recover debts, emphasizing the importance of choosing the appropriate method based on the specific circumstances and type of debt involved.

Debt Collection MethodsDebt Collection Methods

Selecting Effective Debt Recovery Methods

To choose the optimal debt recovery approach, creditors should consider the following criteria to find the appropriate method:

  • Evaluate the debtor: financial capacity, relationship, industry, etc.
  • Assess the debtor’s goodwill in repaying the debt;
  • Determine the amount of principal debt, interest rate, and any penalties for violations or compensation;
  • Accurately calculate interest and compensation amounts;
  • Evaluate the advantages and disadvantages of each debt recovery method;
  • Analyze the risks associated with debt recovery and devise plans to prevent or minimize risks to the lowest extent possible.

Based on these criteria, the debt collector will examine and analyze the debt recovery situation and proceed to select the most suitable method with the potential to successfully recover the debt.

Debt Recovery Advisory Services for Clients

Debt recovery advisory can help creditors to orientate and carry out the recovery of outstanding amounts quickly and efficiently. The debt recovery advisory services provided by Long Phan will support the following tasks:

  • Review contracts, agreements, and other documents related to the debt and debt recovery activities;
  • Advise on identifying debt amounts including principal, interest, and other compensation or penalties in the agreement between the creditor and debtor;
  • Consult on legal issues related to the debt agreement and recovery;
  • Evaluate the debtor’s situation and their ability to repay the debt;
  • Develop initial negotiation and bargaining plans with the debtor;
  • Suggest optimal debt recovery solutions suitable for the actual condition of the debts;
  • Prepare and complete the necessary documents to ensure the debt recovery requirements;
  • Develop a debt recovery strategy that meets the client’s needs;
  • Propose risks and methods to minimize risks in the debt recovery process;
  • Contact and negotiate with the debtor;
  • Detail the costs incurred during the debt recovery process.

Long Phan’s Debt Recovery Advisory Process

Long Phan provides debt recovery advisory services with the following professional intake process:

Step 1: Information and Client Requirement Reception

Debt recovery solution experts will collect information and identify the client’s requirements for debt recovery.

  • Determine the methods the client has previously employed for debt recovery and the outcomes of these methods.
  • Identify the causes and deadlines for the debt under the debt agreement along with specific contract content.
  • Record any documents the client possesses to prove their right to claim the debt.

Step 2: Information Evaluation and Analysis

Based on the information and documents provided by the client, Long Phan will conduct an evaluation and analysis of the debt recovery request, including:

  • Evaluating the legal validity of the debt agreement;
  • Assessing and analyzing the rights and obligations of the parties in the debt agreement to analyze violations by the parties in the transaction;
  • Analyzing the debtor’s ability to repay the debt;
  • Analyzing legal factors serving the debt recovery process.

Step 3: Developing Debt Recovery Advisory Plan

  • Based on in-depth evaluations and analyses, Long Phan’s advisory experts will develop and propose a debt recovery plan that meets the client’s requirements and ensures legal compliance.
  • The plan is detailed from document preparation, implementation processes, and timeline.
  • To ensure the best interests for the client, alongside developing the debt recovery plan, the advisors also detail the risks involved in implementing this plan.

Step 4: Solution and Proposal Presentation

  • After a professional preparation process, our advisory experts will discuss the developed plan with the client.
  • Present in detail and explain the contents of the plan while receiving client feedback to offer optimal solutions for resolving the issue.

Step 5: Implementation and Monitoring

  • After discussing the debt recovery plan with the client, Long Phan will proceed to implement the plan according to the client’s request. We will proactively contact and negotiate with the debtor to determine their willingness to repay the debt.
  • Then, assist the client or directly carry out the debt recovery process according to the proposed plan.
  • Throughout the implementation phase, experts continually monitor the progress and efficiency of the plan in each phase to timely support the client when new issues arise, while also preventing risks that could harm the client.

Debt Recovery Consultation Intake ProcessDebt Recovery Consultation Intake Process

Debt Recovery Service Pricing

The fee for the debt recovery service is determined based on two types:

Firstly, a fixed fee for the debt recovery service:

  • This fee is determined by consultants based on various factors such as the amount of debt, the debtor’s ability to repay, and the complexity of the case. The goal is to set a fixed fee that is reasonable and satisfies the client.
  • The fixed fee will be clearly stated in the service contract. During the process of determining the fee, the consultant will consider the client’s wishes regarding this fee and may negotiate and adjust it to match the nature of the debt recovery and the client’s needs.
  • It’s important to note that the fixed fee does not include any taxes, fees, and statutory charges that the client must pay according to the law.

Secondly, a success-based fee:

  • When providing debt recovery services, the service provider and the client may agree on a reward contract as prescribed by the Civil Code.
  • According to this agreement, the client will reward the service provider a certain amount of money if the service provider successfully recovers the debt as per the client’s request. This contract is established alongside the service contract and includes the terms of the success-based fee.

Contact Methods for Debt Recovery Consultation

Customers can contact debt recovery consultants at Long Phan through the following methods:

  • Online:
    • Hotline: 0906.735.386
    • Email: info@longphanpmt.com
    • Facebook: Long Phan Investment Consulting Co., Ltd.
    • Zalo: 0906.735.386
    • Direct Contact at the Company’s Headquarters: Commercial Lot TM7, Lavita Garden Apartment, 17 Number 3 Street, Truong Tho Ward, Thu Duc City, Ho Chi Minh City.

When undertaking debt recovery, creditors need to have negotiation skills and a thorough understanding of legal issues. Concurrently, the debt recovery process must be planned and detailed to achieve quick and cost-effective results. Recognizing this need, Long Phan offers debt recovery consultancy services to maximize support for clients in such situations. If there are any issues that need clarification, clients are encouraged to contact the hotline 0906.735.386 for detailed answers.

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