NOTICE OF DEMAND: (What to do when you receive one)
A lot of people do not know what a notice of demand is, neither are they aware of the Legal Implications of being served with a Notice of Demand.
Generally, a Notice of Demand is issued by a Creditor or an Investor (it could be an individual or company) which you are owing money to.
Usually, a Notice of Demand will spring up when a Creditor has made several demands for his money but the debtor refuses or is unable to pay up.
The implication of a Notice of Demand (NOD) is that the Creditor is now ready to take a legal actions against you if you do not comply with the directives of the NOD within the time frame given.
Also, note that a NOD is mostly issued by a debt Recovery and/or Bankruptcy Lawyer who is an expert when it comes to debt and financial issues with a third party.
Once you have been served with a NOD, you are expected to do the following:
- Give a quick Respond:
Respond directly to the Lawyer within at most 48 hours of receiving the NOD.
When you respond in time, to an extent it shows a level of good faith on your part and that you are not taking things for granted.
Never wait till a Reminder is sent before you respond.
- Have a payment plan on ground:
A NOD of demand simply means you must pay up and you will pay either way (voluntarily or by compulsion)
However, it is more expedient if you rather bring something to the table, it gives you time to pay at your pace (bearing at the back of your mind that the Creditor deserves to get his money back in useful amount and not in piecemeal)
- Get a Lawyer to help you with the repayment process:
- Once you have been served with a NOD, it becomes a more legal and serious matter, and if not handled properly by an Expert, you may just find your way to court for a debt recovery and/or bankruptcy court proceedings.So, get the help of a Debt Recovery Lawyer, Insolvency Practitioner and/or Bankruptcy Lawyer to map out possible solutions, guide you on your chances and the best options available for you based on the peculiarity and complexity of the debt at hand.Things you should not do when served with a NOD:
- Don’t ignore nor push it aside,
- Never come up with an excuse of “I am still working on it ” You should come up with a workable and reasonable payment plan
- Don’t contact the Creditor directly on the issue, you have longed pass that.Get professional help too.In conclusion, how you handle a NOD to a very large extent, will determine how the recovery process will end.
No matter what you do, remember, the Creditor has the legal right to demand for his money back with interest (where applicable) and damages as well.
Never lie fallow, take an active step towards the repayment of your loans and debt responsibilities
Is someone owing you or you are owing someone
Seek professional help today.