Home > Uncategorized > Negotiating a debt. The basic rules

Negotiating a debt. The basic rules

negotiationLast week I assisted a client with a debt negotiation. The debt is owed by my client and unfortunately they have incurred a CCJ. It is a complicated debt involving metered usage of electricity across a variety of properties and contracts. It is further complicated by the fact that I personally do not trust the claimant at all.

Not an unusual case but events reminded me of some fairly simple rules that should always be adhered to.

1. Dont get emotional. This is not personal. It is not a divorce case or a conviction against a burglar

2. Ensure that you have all the facts ready and clearly presented. Clarity is key

3. Do not threaten to take an action.

4. Less is more. Do not elaborate any more than you absolutely have to

5. Keep it friendly and professional

6. Keep it out of court.

7. Have clear idea of your bottom line before you start

8. Always be aware of the ability of either side to settle. Credit worthiness should drive your decision

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