As a business trying to manage its cash flow, you can only vet those you do business with to such an extent before it becomes untenable for your operation. Most people will act scrupulously when it comes to their business interactions, but when a customer or business fails to pay their debts, you need to know the recovery options. This arrangement can present quite a few challenges to a creditor attempting to collected owed debts. Depending on the scenario, this process may be more accessible than you think. Here is what businesses should learn about collecting debts overseas:
Tracking down a debtor
Half the battle of collecting a debt is often in locating the debtor and their available assets. Given the prevalence of technology in business interactions today, creditors have many more routes for tracing a debtor.
Obtaining a judgment debtor examination order
A person or business entity can obtain an order of examination in a local court to locate any hidden or intentionally transferred assets. The judgment debtor is then ordered to the court to answer questions under oath to help facilitate asset location. If the debtor does not appear, a warrant may be issued for their arrest.
Turnover orders
Once suitable assets are located, a court may issue a turnover order to separate those assets from the debtor. The execution of this order may have various enforcement options depending on the circumstances.
Pursuing all your options
Enforcement guidelines and legal limitations can differ from country to country. It would help if you found someone with expertise in pursuing overseas claims before putting your business at risk.