Debt Recovery - Wttlichumaadvs

Q: What steps can I take to recover a debt in Kenya?

To recover a debt in Kenya, you can follow these steps: Demand Letter : Send a formal demand letter to the debtor requesting payment within a specified period. Negotiation : Attempt to negotiate a repayment plan or settlement with the debtor. Engage a Debt Collection Agency : If negotiation fails, consider hiring a licensed debt collection agency. Legal Action : If the debt remains unpaid, you can file a lawsuit in court to obtain a judgment against the debtor. Enforcement : Once you have a court judgment, you can take steps to enforce it, such as garnishing wages, seizing assets, or placing a lien on property.

Q: What are the legal requirements for filing a debt recovery lawsuit in Kenya?

To file a debt recovery lawsuit in Kenya, you must: Have Valid Documentation : Ensure you have all relevant documents, such as contracts, invoices, and proof of debt. Jurisdiction : File the lawsuit in the appropriate court based on the amount of debt (e.g., Small Claims Court for debts under KES 1 million, Magistrate’s Court, or High Court). Statement of Claim : Prepare and file a statement of claim outlining the details of the debt and the relief sought. Service of Process : Serve the debtor with the court documents, informing them of the lawsuit.

Q: What are the costs associated with debt recovery in Kenya?

The costs of debt recovery in Kenya can include: Legal Fees : Fees for hiring a lawyer to handle the case. Court Fees : Filing fees and other court-related expenses. Debt Collection Agency Fees : If you use a debt collection agency, they may charge a percentage of the recovered amount or a flat fee. Enforcement Costs : Costs associated with enforcing a court judgment, such as fees for bailiffs or auctioneers. These costs can vary, and it is advisable to discuss them with your lawyer or debt collection agency beforehand.

Debt Recovery Law firm in Kenya

Debt recovery is the process by which commercial unpaid invoices and debts are recovered through a formal court process. Our debt recovery solicitors can guide you through this process and help you with whatever you need.

Businesses can be complex legal entities that require specialized legal experience. Corporate law is the area of legal practice that encompasses all laws that are needed to form and run a business. They include starting, buying and managing, closing and selling any businesses and associated corporate structures. We can assist with all of your business law needs. If you require the help of commercial debt recovery lawyers solicitors, why not contact our skilled team for a free initial telephone consultation and arrange your debt recovery consultation health check? We have a wealth of knowledge and access to specialist resources, which means you get the best help and advice you need. WTT Lichuma Advocates` dedicated debt department advises clients ranging from asset-based finance companies to large corporate, SME, and owner-managed businesses to private individuals.

Debt recovery LAWYERS IN KENYA

PRE-LEGAL COLLECTION, RECOVERING DEBTS WITHOUT THE NEED FOR LEGAL ACTION

Wtt Lichuma Advocates LLP offers a full range of debt collection services to suit your individual requirements including pre-legal collections, tracing, data gathering and dispute resolution. We can tailor a strategy to best suit your customer base whether it is commercial or consumer or a mixture of both.

Wtt Lichuma offers a full range of debt collection services to suit your individual requirements including pre-legal collections, tracing, data gathering, and dispute resolution. We can tailor a strategy to best suit your customer base whether it is commercial or consumer or a mixture of both.

Pre-legal collections refers to the initial phase of debt collection and typically comprises of a combination of letters, emails, and telephone calls prior to any legal action being taken against a debtor. During this stage, the creditor or a debt collection specialist attempts to recover outstanding debts from individuals or businesses who have fallen behind in relation to paying their outstanding invoices.

The pre-legal collections process typically involves communication with the debtor through various means, such as phone calls, letters and emails, to remind them about the unpaid debt and request payment. The goal is to encourage the debtor to voluntarily resolve the outstanding debt without resorting to legal action.

In most cases, pre-legal collections involve negotiation to reach a payment arrangement or settlement that is acceptable to both parties. If successful, this process can help avoid the time and costs of proceeding down the County Court route to recover the debt.

However, if the debtor remains uncooperative or unable to make payments during the pre-legal collections phase, the creditor may consider escalating the matter to a debt recovery specialist who is regulated by the Solicitors Regulation Authority to commence Court action by issuing a County Court Claim Form, followed by a County Court Judgment and subsequently using whichever method of enforcement action is most appropriate to recover the debt.

COURT PROCEEDINGS

Any sum declared by any Act, whether past or future, to be a civil debt recoverable summarily may be recovered in the court of any magistrate of competent jurisdiction in the manner prescribed by this Act. A magistrate holding a subordinate court of the first class shall have jurisdiction in any suit or proceeding brought under this Act, and notwithstanding anything contained in the Magistrates’ Courts Act, the pecuniary jurisdiction of such magistrate in any such suit or proceeding shall be unlimited .All proceedings under this Act shall be commenced by complaints, which shall be in writing and shall set forth the particulars of the claim

A magistrate of competent jurisdiction receiving a complaint may issue a summon stating shortly the matter of the complaint and requiring the defendant to appear at a certain time and place before him to answer the complaint.

NEGOTIATING DEBT ARRANGEMENTS

We are experienced in working closely with in-house legal teams, with boards and senior management teams, and with operational managers and other staff, depending on the size of our client’s organisation and their specific legal requirements.

INSOLVENCY PROCEEDINGS

The court can be involved in insolvency proceedings for a number of purposes, including:

opening the insolvency process
issuing claims against individuals and entities to, among other things, recover property or obtain damages
issuing proceedings to compel individuals and entities to co-operate with the insolvency office-holder
issuing applications to obtain the court’s direction on a particular issue

The court’s involvement in insolvency proceedings is to some extent subject to procedure and case management .

Opening the insolvency process

Insolvency proceedings commenced using the court route are typically commenced on a petition or an application to court (on notice to the debtor company or individual). Compulsory liquidations and bankruptcies are commenced by a petition (bankruptcies can also be commenced by way of an application outside of the court system where an individual seeks…

DEBT RECOVERY FOR UNSECURED CREDITORS

Unsecured creditors do not have a charge on assets of the debtor.

In such cases, a creditor generally sends a written demand to the debtor giving them a specified amount of time within which to make payment and thus satisfy the debt and when there is failure by the debtor to duly comply with the demand or enter a negotiated settlement that will perhaps extend the time for the debtor to pay the debt or otherwise satisfy the debt to the satisfaction of the creditor, the creditor can escalate to the second stage of recovery of this unsecured debt.

It is necessary to send a formal written demand to the debtor to avoid situations where the court can decline to award costs to the judgement creditor where you as the creditor win the case if you had earlier failed to serve a demand letter on the debtor.

The second stage of debt recovery where there is failure to comply with the demand, involves instituting a debt recovery suit in the appropriate court of jurisdiction in order to recover the debt.

INTERNATIONAL DEBT RECOVERY

Doing business worldwide comes with a great number of advantages: more opportunity, new markets, and greater business growth. However, this development means you might also find yourself trying to recover money from a customer who is not only in a different time zone to you but also has different laws and customs to abide by.

Although in this situation you may worry you have to write the money off as irrecoverable, we can give you confidence in the knowledge that your international debt recovery options don’t diminish as soon as the debt crosses borders.

BULK DEBT RECOVERY

We act for clients in both commercial (B2B) and consumer (B2C) debt collection matters. We first assess each accounts receivable portfolio in order to develop the most effective debt collection and recovery strategy for each unique situation.

We then put that strategy into action in order to collect the maximum amount of money in the shortest period of time. We act entirely on contingency. If we don’t collect, you don’t pay.We avoid litigation whenever possible, but are always prepared to litigate if necessary. If viable, we will litigate the matter entirely on contingency. We typically request a retainer for court fees and disbursements.If we do not recommend litigation, but a client still wants to sue their debtor, we may take the case at a competitive hourly rate.If necessary, we will take steps to enforce judgment and seize assets.

BUSINESS LAW IN KENYA

PERSONAL DEBT RECOVERY

A Personal Debt Collection effort is targeted at clients who may have extended a personal loan, be it to relatives, partners, associates, etc. usually out of goodwill, only to realize that the loan amount is not duly returned.

We ensure that all your business debts are paid by the default payers and we don’t rest until you get your money. We maintain our professionalism as Debt Collection Officers and protect the interests of our clients.

Corporate debt recovery law

As a businessperson, factor, asset-based lender, banker, real estate or other professional, you always have an eye on the bottom line. Time is money. Past-due accounts can cause business interests and profits to suffer.The Law Offices of WTT Lichuma Advocates LLP., work to maximize recovery of all sizes of commercial debt. We have earned a reputation as aggressive attorneys who protect our clients’ financial interests.“When past-due accounts are an issue, you need an aggressive lawyer who has the know-how to get your money.”We know how to collect. Contact our commercial debt collection ladiscuss your legal action

high value international debt recovery

Wtt Lichuma Advocates have the legal capacity to litigate international debt. Recovering a debt can be very challenging for a business particularly if the debtor is not in Kenya. Late payment of a high-value debt can have a significant impact on the cash flow of a business and we understand the importance of ensuring recovery is prompt, efficient, and cost-effective.WTT Lichuma Advocates LLP are expert debt collection lawyers. Based in Kenya, we are familiar with the nuisances of international debt recovery, working with many clients who operate across the globe. We offer strategic, high-level advice led by our partners and specialize in claims over sh.1000000

Negotiating a settlement

At WTT Lichuma Advocates LLP, we have particular expertise in negotiating a settlement before court proceedings. In a recent complex debt claim, we managed to agree on a settlement between two companies whilst preserving the commercial relationship between them. We understand that it is often very important that a commercial relationship is maintained and we therefore always adopt a commercially sensitive approach.

It is often the case that, before litigation is required, it is simply enough for a letter to be sent to the debtor from your lawyer. This letter will clearly state how much is due and the final deadline for payment before court proceedings will be instituted. Often this helps focus the mind of the debtor and can lead to speedy resolution.

Equally, it may be that there is a contractual dispute as to how much is owed by the debtor. If this is the case, we can negotiate with the debtor or their lawyer solicitor with a view to reaching a compromise position that works for all parties.It is important that you explore non-litigious options when seeking to enforce an international debt.

Why WTT Lichuma Advocates As Your DEBT RECOVERY LAWYERS?

Debt Recovery FAQ’s Answered

What is debt recovery?hbnrentr2024-07-05T11:48:13+00:00

What is debt recovery?

Debt recovery is the process of collecting unpaid debts from individuals or businesses that owe money. This process can involve various methods, including negotiations, legal action, and the involvement of debt collection agencies.

What steps can I take to recover a debt in Kenya?hbnrentr2024-07-05T14:29:55+00:00

What steps can I take to recover a debt in Kenya?

To recover a debt in Kenya, you can follow these steps:

Demand Letter: Send a formal demand letter to the debtor requesting payment within a specified period.
Negotiation: Attempt to negotiate a repayment plan or settlement with the debtor.
Engage a Debt Collection Agency: If negotiation fails, consider hiring a licensed debt collection agency.
Legal Action: If the debt remains unpaid, you can file a lawsuit in court to obtain a judgment against the debtor.
Enforcement: Once you have a court judgment, you can take steps to enforce it, such as garnishing wages, seizing assets, or placing a lien on property.

What are the legal requirements for filing a debt recovery lawsuit in Kenya?hbnrentr2024-07-05T14:33:59+00:00

What are the legal requirements for filing a debt recovery lawsuit in Kenya?

To file a debt recovery lawsuit in Kenya, you must:

Have Valid Documentation: Ensure you have all relevant documents, such as contracts, invoices, and proof of debt.
Jurisdiction: File the lawsuit in the appropriate court based on the amount of debt (e.g., Small Claims Court for debts under KES 1 million, Magistrate’s Court, or High Court).
Statement of Claim: Prepare and file a statement of claim outlining the details of the debt and the relief sought.
Service of Process: Serve the debtor with the court documents, informing them of the lawsuit.

How long does it take to recover a debt through the Kenyan legal system?hbnrentr2024-07-16T10:31:57+00:00

How long does it take to recover a debt through the Kenyan legal system?

The time it takes to recover a debt through the legal system in Kenya can vary widely based on several factors, including the complexity of the case, the court’s schedule, and whether the debtor contests the claim. On average, it can take several months to a few years to obtain a judgment and enforce it.

What are the costs associated with debt recovery in Kenya?hbnrentr2024-07-16T10:36:11+00:00

What are the costs associated with debt recovery in Kenya?

The costs of debt recovery in Kenya can include:

Legal Fees: Fees for hiring a lawyer to handle the case.
Court Fees: Filing fees and other court-related expenses.
Debt Collection Agency Fees: If you use a debt collection agency, they may charge a percentage of the recovered amount or a flat fee.
Enforcement Costs: Costs associated with enforcing a court judgment, such as fees for bailiffs or auctioneers. These costs can vary, and it is advisable to discuss them with your lawyer or debt collection agency beforehand.