The process of pursuing payments or other agreed-upon value owing to creditors is known as debt collection or cash collection. The debtors could be business organisations or individuals.
It usually occurs with both businesses and individuals in Myanmar. One of the things that triggers the debt collection procedures is when parties have unpaid invoices according to their contract. Based on our experiences, we have had clients from different industries such as Banking, Telecommunication, Livestock, Breeding, Food Supplier and Production, Food and Beverages, Agricultural & Machinery, and Pharmaceutical etc. These are the most common industries facing Debt Collection here in Myanmar.
What then should you do if you’re having trouble getting your debt collection issues in Myanmar? There are a few alternatives available to solve Debt Collection issues.
You are required to first seek some legal professionals. As previously mentioned, the majority of problems stem from the paperwork. Here are some actions to be commenced:
1. Document Reviews:
You are to first complete the document reviews in order to deal with the underlying issues. You can identify your areas of strength and weakness based on the documents. There might be more options available for recovering your debt. This is the most important step of this procedure.
2. Legal Notice:
A legal notice in this case is a demand that the debtor settles the payment on the obligation as quickly as possible in favour of the creditor. We may refer to this process as the negotiable approach. Legal Notice usually appears as the main thread. However, it is a way of addressing what you require them to handle in order to recover your money.
Therefore, reviewing your documents is the most crucial stage in determining your options for future debt recovery. After addressing the Legal Notice, you may have two options based on the opponent’s Reply Notice as follows:
A. Negotiation Process
Being a well-experienced legal firm, We, AMK & THIHA are aware that the majority of our clients don’t prefer to go through the court proceeding process. Nevertheless, most of the cases have been done through the channel of negotiation. At this point, we shall use good technique and extreme caution.
B. Case Filing Process
The case filing process is the option when the negotiation is unsuccessful. It might go through the court proceeding to the Civil and Criminal case, depending on the issues. While Criminal proceedings primarily deal with breach of trust, fraud, cheating etc. Additionally, Civil proceedings typically arise from breaches of contract, breach of agreement.
If the debtor fails to settle the debt, he will suffer from attachment to his properties and auction, sentence to imprisonment, insolvency, etc.
We, AMK & THIHA, the litigation law firm in Myanmar, provide extensively and effectively the aforementioned services based on the cases relating Document Reviews, Legal Notice, Negotiation and Case Filing.