Have you ever considered how your approach to due diligence could be the key factor in handling set aside applications in debt recovery? Understanding and preparing for set aside applications is essential in the intricate world of debt recovery. These applications, which can reopen previously settled cases, often hinge on the level of due diligence exercised before issuing a claim. This blog explores the importance of due diligence and how it can impact the outcome of set aside applications.
Why is Due Diligence So Crucial?
Due diligence involves a comprehensive investigation and preparation before initiating a legal claim. In the realm of set aside applications, this isn’t just a routine step; it’s a critical element that can determine the success or failure of a case. The bar for setting judgments aside is relatively low, and the most common reason for these applications is the debtor’s assertion of not receiving any correspondence, thus missing the opportunity to defend the claim.
Building a Strong Document Trail
Your best defence in debt recovery is a robust document trail. This should include:
- Evidence of correspondence
- Documentation of attempts to contact
- Proof of debt validity
The Art of Navigating Set Aside Applications
Set aside applications are often filed by debtors who argue they were unaware of the court proceedings, leading to a default judgment. Judges tend to grant the set aside if it appears the debtor didn’t have a fair chance to present their case. Here, your due diligence and document trail are crucial.
Effective Due Diligence Strategies
- Before issuing a claim, verify the debtor’s contact details and ensure all correspondence is correctly addressed.
- Use platforms like the Debt-Claims Solicitors online portal to track and record interactions and correspondence with debtors. This digital trail is invaluable in court.
- Make sure all actions comply with legal standards and debt recovery regulations, strengthening your case and maintaining professional integrity.
Technology is a key ally in debt recovery in today’s digital world. Tools provided by platforms like Debt-Claims Solicitors can automate the tracking of correspondence, log interactions, and store important documents, simplifying the presentation of a comprehensive case if a set aside application is filed.
Responding to Set Aside Applications
When a set aside application is filed:
- Assess Your Documentation: Evaluate the strength of your document trail, as this will form the basis of your response.
- Consult Legal Experts: Seek advice from legal professionals to understand the best course of action.
- Prepare for Possible Re-litigation: If the set aside is granted, be ready to re-litigate the case, relying on your thorough documentation.
In debt recovery, the diligence exercised before issuing a claim can significantly influence the outcome of set aside applications. By maintaining thorough documentation and ensuring all due diligence steps are meticulously followed, practitioners can strengthen their position in both agreeing to and defending against set aside applications. Utilising technology like the Debt-Claims Solicitors portal can further enhance this process, ensuring that every step is well-documented and easily accessible.
To find out more about how Debt-Claims Solicitors can assist your business, contact us today or call us on 02475 185 608.