Debt Recovery

Debt recovery is a critical aspect of financial stability for businesses and individuals in Sabah.

Whether you are a business owner dealing with unpaid invoices or an individual facing non-payment of loans, recovering debt can be a complex and time-consuming process. Legal support is essential to navigate this process effectively and to ensure that your rights are protected.

Legal Framework

In Sabah, debt recovery is governed by several laws, including the Contracts Act 1950, the Limitation Ordinance (Sabah Cap. 72), and the Insolvency Act 1967. Understanding these laws is crucial for ensuring that debt recovery actions are legally sound and enforceable.

Types of Debt Recovery

Debt recovery can be approached in several ways, depending on the situation:

Negotiation: Attempting to reach an agreement with the debtor outside of court.
Litigation: Taking legal action to obtain a court judgment against the debtor.
Enforcement: Using legal tools to enforce a court judgment, such as garnishing wages or seizing assets.

Common Challenges

Recovering debt in Sabah can be challenging due to factors such as debtor insolvency, difficulty in tracing debtors, and delays in the legal process. However, with the right legal strategy, these challenges can be managed effectively.

Our Services

At Michele Sim & AP Lee, we assist clients in all stages of debt recovery. Our services include drafting demand letters, representing clients in court, and enforcing judgments. We work to recover debts efficiently and cost-effectively, minimizing the impact on your business or personal finances.

Conclusion

Timely legal action is crucial in debt recovery. The longer a debt remains unpaid, the harder it can be to recover. Contact us today to discuss how we can assist you in recovering your debts.

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