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What options do I have when recovering debt?

What other forms of legal action are there?

Debt is a major financial factor for businesses throughout Australia. It is both an asset and a vice and has a number of different uses. Yet, if a company is in need of cash flow or capital costs to be used, for example, as part of a new commercial agreement, debt recovery through legal action can become an important process.

However, debt recovery does not always end with litigation. Instead, there is a host of different alternatives that can help you recover your debt and never step foot inside a courtroom. 

There is a host of different alternatives that can help you recover your debt and never step foot inside a courtroom.

Whatever the choice, you will need the counsel of an experienced commercial lawyer – who can help guide you through the process.

Why is litigation not always the best choice?

In many cases, litigation is the only way to proceed. For instance, you could be served with court papers and require an attorney to help you through the court process. While the litigation process is not always by choice, when you are given opportunities to follow alternative pathways, it might pay to do so. 

One of the core goals of a lawyer is to put out fires rather than start them. An experienced lawyer will look first at alternatives to litigation and advise you on your choices.

There are numerous reasons why a lawyer would do this. For one, litigation is a slow and costly and in some cases, it can have unintended consequences. Additionally, if the client is in a dispute with a partner, friend or family member, litigation can damage – if not destroy – these personal and business relationships. 

For these reasons, lawyers, unlike many clients, are much less likely to jump straight into a litigation battle. Instead, they will work hard to understand the clients needs, interests and circumstances and use this knowledge to find the best legal process. 

What alternatives are there to litigation?What alternatives are there to litigation?

What alternatives are there to litigation?

When you boil it down, lawyers are really just problem solvers. As such, once they know all the facts they can find multiple pathways to a resolution. While not all of these will work, their expertise can guide you to a solution that fits your needs.  

One of the first pathways lawyers will try is collaboratively working with the opposing advisor. This approach can lead to a resolution that takes into account both parties interests and can usually deliver a {win-win} solution or agreement. 

However, if this zero-sum game fails, a legal advisor could recommend a mediated session. Whether you are in a dispute or disagreement over a commercial contract, mediation can help you. 

Collaborative work by your lawyer and mediation are both zero-sum games.

Mediation is a future-focused and solutions-driven solution that is designed to entice parties to break free of their polarised positions and find common ground. One of the most important aspects of meditation surrounds who controls the meeting. Unlike litigation, where a party gives up control in the courtroom to a representative – the lawyer – mediation passes control over to the parties, not the counsel. 

Central to this process is the mediator. In this role, they will be an impartial enabler who strives to keep both parties on a structured course, develop an environment that allows space for all parties to speak and keep the conversation from running into any sticking points.

However, for mediation to work both parties will need to be willing to meet and allow the other to voice their concerns and grievances. 

If you would like to know more about the types of legal action you can take that does not involve the courtroom, talk to the experts. Contact McCarthy Durie Lawyers today and find out more.