What Is A Summons To Pay?
According to basic finance knowledge, every business needs to be able to recover the money owed to them by external entities. They have to adopt different methods and approaches to make this process successful. One of the most effective methods that any business can adopt is using a Summons To Pay. But what exactly is a Summons to pay, and how is it used? Keep reading to find out.
The Summons To Pay is a legally binding document used in different countries worldwide. Businesses and corporate organizations in other parts of the world rely on this document several times to claim some receivables. In technical terms, the summons to pay is a legal procedure that compels a debtor to settle its financial obligations. This legal procedure is usually backed by judgment from a Commercial Court.
An interesting thing to note about this summons to pay is that the longer it takes to be dealt with, the more expensive it would become to take care of. However, this legal summon can last up to 2 years after it’s issued. This procedure is considered to be the best approach to reclaim a debt which you feel the debtor would contest your claim and fail to make necessary payments.
Often, when a person refuses to settle their debt or any claim made by another entity, the case ends in court. The Summons To Pay is a proactive way to avoid wasting time further. Rather than spend time going back and forth for a favorable judgment, the Summons To Pay identifies the debtor and issues a strict order for them to follow.
What Is The Purpose Of A Summons To Pay?
A Summons To Pay is not demanded to cheat the other party. Instead, it is done to;
- Allow the judge of a Commercial Court to determine whether the debtor can settle the debt.
- Determine the date on which the debt must be settled totally.
- Create a payment schedule that allows a debtor to settle debts by paying install mentally on specific dates
- Allow a debtor to choose a different payment schedule
- Allow a creditor to obtain useful information for other types of collection procedures
A Detailed Overview Of The Summons To Pay Process
The summons to pay may be a serious legal procedure. However, it has to go through a fairly unique process for successful completion.
The Summons To Pay is represented by a note issued by a bailiff on behalf of a plaintiff (the creditor) to request that his debtor appears before the Commercial Court. This confrontation is asked to give both parties a chance at a fair hearing.
During the confrontation, the creditor will have to prove that his claim is;
- Real: The debt must have an undeniable existence that both parties can confirm. The proof to verify a real claim includes order(s), invoice(s), contract signed by both parties, delivery order(s), and any correspondence that shows the debtor acknowledging your claim.
- Valuable: A valuable claim is one whose value has been assessed. If you applied a delay condition to the previous contract, you might use the interest rate that is indicated in the sales condition, which has to agree with the stipulations of the law.
- Due: Your claim must be for a specified amount and must have already passed the expected duration for the lapse of the contract.