A: Act as soon as you no longer believe the debtor is making a sincere effort to pay.
The chance of a successful recovery generally deteriorates with time. The longer you wait, the lower your chances of recovery.
Why? Because other creditors will act first, the debtor’s cash position may worsen, assets may disappear, and key documents or witnesses may become harder to locate.
Do not wait just because the debtor keeps asking for more time.
A request for time should come with a concrete proposal, an immediate first payment and clear commitments. Without those elements, delay usually benefits the debtor rather than the creditor.
The rule of thumb is: the earlier you take credible action, the better your chance of recovering a larger portion of the debt.
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