Humanity Law Associates

At Humanity Law Associates, we work in collaboration across Pakistan—always ready to respond to the needs of our clients and craft powerful solutions for them, from our offices in Pakistan.

Irrespective of the size of the business, unpaid invoices can have a huge impact of cash flow. Incredibly, research suggests that approximately 70% of all invoices are not paid on time. Even if payment is made just a few days late, it can add up to a significant administrative and financial cost for the business.

Of course, unpaid invoices and debts that drag on for weeks, months or even years can have an even bigger impact on an organisation’s cash flow. Most businesses view professional debt recovery through Legal Action as something of a last resort option, despite its potential benefits.

Legal Action

Your last resort is to pursue legal action against your client. When this happens, you have two options open to you, depending on the amount your business is owed:

The small claims court will allow both sides (you and your client) to mediate and reach a conclusion. This will usually mean the client is ordered to repay any debt, interest and fees, which have been accrued as a result of having to pursue legal action.
Following Suits can be filed against claims.

1. Recovery Suit.
2. Damages against the said Recovery Suit.
3. Suit for Specific Performance (Incase of Contracts.)
4. Cancellation of Instruments (Agreement).
5. Recession of Contract.
6. Summary Trial (Arbitration).
   

How effective are Court in Pakistan when recovering Debts?

Courts in Pakistan are very effective in recovering debt amounts, providing that the person or company involved has assets in Pakistan. When dealing with Overseas matters, courts are more likely to expedite the process, in the interest of Justice.
A Factor that may sway the effectiveness of the outcome of the debt recovery matter would be the individual’s or companies financial climate in regards to repaying the loan. If the company is unable to pay the loan amount and expenses, then the courts would facilitate a part payment plus monthly recurring payments.

In Summary…

While it’s important to give debtors a fair chance to pay, there comes a time when escalation is necessary. Unless you have extensive experience and expertise in strategic debt recovery, your business could benefit significantly from expert legal support.