Understanding the situation
Being owed money can arise from many situations: a personal loan between individuals, an unpaid business invoice, a returned cheque, or amounts due under a settlement or other agreement. Each situation may be evidenced differently, and the strength of your documentation often shapes what options are realistically available.
It is also worth understanding why the debt has not been paid — genuine financial difficulty, a dispute over the underlying obligation, or simple delay can each call for a different approach.
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Possible options
Which of these makes sense — and in what order — depends on the amount owed, whether the debtor disputes it, and your relationship with them.
- Direct communication with the debtor to understand the reason for non-payment and explore a resolution.
- A formal written demand or legal notice setting out the amount owed and a request for payment.
- A negotiated payment plan, ideally documented in writing, including a written acknowledgment of the debt where appropriate.
- A court-based process to seek an enforceable decision, subject to the applicable procedure and the evidence available.
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Practical steps
- 1Gather all documents that evidence the debt: agreements, invoices, cheques, messages or bank records.
- 2Set out a clear timeline: when the amount became due, any partial payments, and any promises made.
- 3Contact the debtor in writing and keep a record of the response, if any.
- 4Consider a formal written demand if informal contact does not resolve the matter.
- 5Take advice on whether a court-based process is appropriate given the amount and your evidence.
