One of the most disruptive things for a business is being owed funds. However, you can reduce disputes over money by taking swift action against the other party. Strong issuance, such as bankruptcy orders and statutory demands, are on your side, so here are some effective tips.
Seek Legal Guidance on the Matter
Before you do anything, it can help to seek professional legal guidance on the matter of money being owed or money being divided. This helps in business but can also help in personal matters such as the division of assets when getting divorced or with estate management. Private companies such as Montana Elder Law are your best bet for these matters. But when it comes to business-to-business money disputes, the law is on your side when you are right.
Reduce Disputes Over Money with Bankruptcy Orders
It is possible to order someone bankrupt when they owe a substantial amount of money, and the other party is unwilling to pay you back. This is best used for enforcing debts against customers or businesses as it can be emotional and devastating to a private individual such as a personal friend or relative. The process means that the other person will have to declare bankruptcy, and their assets will be seized in order to recover the money that they owe to you or your business.
Consider Mediation Before the Court
Going to court can be a long and drawn-out process, and there is no guarantee you will win.in addition, there are often substantial fees associated with it. However, it can help to consider mediation. Mediation helps when both sides have come to an agreement but cannot finally finalize it. In this case, an appointee can look at the evidence and make a decision that benefits both parties. It isn’t free but can cost substantially less than making a legal case for the court.
Prove the Money Is Owed
Any process can be handled much quicker and easier when you can prove that money is owed. Large companies have multiple options, but as a freelancer, you may not have the funds or knowledge. However, there is often a provable pattern that can be presented to the court:
- The other side has written bad checks that have bounced upon receipt.
- There have been numerous ignored attempts to make contact.
- There are accounts that show unpaid invoices.
- Bad account history is clearly demonstrable from your records.
- It is probable that any money owed was not a gift or donation.
The more evidence that can be shown, the better. Any mediation or judgment can be made when there is a pattern of no intention to pay, resulting in a favorable decision for you.
Make Reasonable Demands
Mediation sometimes isn’t effective, and going to court should be the last resort. In the meantime, you can make statutory demands for what is owed. This is a formal demand for funds which a debtor usually has 21 days to pay. If they don’t, then it can result in forced bankruptcy or a winding-up petition. However, the other side also has legal recourse and can claim to have the debt set aside during the 21-day period, and this can draw out the process.
The Police Can Reduce Disputes Over Money
A typical money-owed case is not a matter for the police, and they will almost never get involved because it is a civil matter. However, there are some reasons that can cause the police to take action. The police can get involved if the money you are owed was taken as a criminal act. For example, you were directly robbed, or money was taken fraudulently. However, in almost all cases, the police will advise you to contact a legal team and use the civil courts for action.
Take Action ASAP
The longer a claim for money is left, the harder it can be to recover. Therefore, you must take immediate action when someone owes you or your business money. Sitting back on this and not doing anything can be used against you, and the other party can argue against proceedings later down the line. Further, there are also legal statutes on demands for money. For example, some debts cannot be legally enforced if a claim hasn’t been made within the correct period.
A business or individual can reduce disputes over money in a number of ways. Seeking legal guidance is the best first step and works well when you can prove that money is owed. However, you must also move quickly to make any demands as there are time limits involved.