“I’ve been served a statement of claim, please help me!”
I have spoken previously regarding the need for communication.
Unfortunately, I have several clients who were facing court action due to silence brought about by embarrassment about their inability to pay invoices on time. My first action was to telephone the creditor in an endeavour to save the costs of proceeding to court with a plan of payments. In the majority of cases this approach was successful.
Always in the first instance I discuss the situation with my client and discover the situation from their point of view. It is often the case that the problem lies in communication. From my experience every business at some time will suffer cashflow problems. From my own experience as a small business owner and as a lawyer, immediate communication is essential. Very often clients believe that they will trade out of their immediate problem and will be able to pay or debts late and do not wish to make their supplier aware of their immediate problems. On the other hand, business gets in the way of communicating a problem with the goods, or an error in the invoice.
If possible, I will endeavour to settle the matter through a conversation with the creditor. The amazing thing I find that in most cases clarity and honesty enables the situation to be solved, avoid the costs of litigation and settled by a deed, by a payment plan, have the invoice either further explained to the satisfaction of my client or amended by agreement. I have found that in the majority of cases it is the silence and lack of information which has caused a creditor to commence proceedings.
In all relationships equal respect for each other is mandatory where looking at situations from the other side and understanding their position will result in better relationships be that of creditor and debtor or plaintiff or defendant. Litigation must always be the last option after all other options have failed. If you need my assistance to communicate with a creditor or other party please do not hesitate in contacting me.
Have a wonderful day,
0419 233 670