Legal Action on Company Debtors Account

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asked on Sep 10, 2015 at 02:01
by   gtern
I need your advise on the legal action against my long overdue customer.

Can I go to legal action after 3 times of warning letter asking for payment?

If customer did pay me the minimum amount or some long overdue amount and inform me that they need to take longer time to settle the overdue outstanding and will pay me by monthly, do I still able to take legal action against this customer?


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answered on Sep 10, 2015 at 03:53
by   Mich
You send warning letter 10 times oso no use.

Get a legal firm to issue a LOD. Letter of Demand. If the debtor still ignore, file a lawsuit.

As for your RM1 directorship, go find yourself another name to replace you out. No other shortcut if there are only 2 local directors registered.
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answered on Sep 10, 2015 at 14:28
by   gtern
Dear Mich,

Thank you for your advise.

How much is legal firm will charge me on the LOD and later file a lawsuit? The amount customer owe me is about MYR65K in total with invoice aging from 7-65 days. If my customer willing to pay me some amount of the long overdue on MYR3000 - MYR5000, do I still have strong reason to issue LOD and file lawsuit later as I didn't get 50% of the payment.


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answered on Sep 10, 2015 at 17:17
by   jeff005
Just get the LOD out.
This is the first step to recover your monies.
Even if it is 4K balance after a few years later can still file a lawsuit for recovery of debts but there must be proper documentation.
Do remember to send updated statement of ac to your debtor every month. This is a must..
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