Collection of unpaid payment for goods supplied

Debt collection

What should you do if you have a monetary claim such as a loan or goods payment, but the debtor does not pay?

To receive help from public authority, that is, to execute a compulsory execution, there must be an executory title such as a judgment. Therefore, you must first file a lawsuit or apply for a payment order to obtain a judgment or payment order, and once the judgment etc. is finalized, you must identify the other party's property and apply for compulsory execution appropriate for each type of property.

All acts taken to obtain satisfaction of a claim, from locating the debtor, investigating assets, demanding repayment of the claim, and receiving repayment, are called 'debt collection'. Recently, there was a case where lawyer Joo Youngjae successfully collected a goods payment claim for a small and medium-sized enterprise. I will introduce this case.

Facts

The client (the creditor) is a company engaged in wholesale and retail of piping materials and non-ferrous metals. From around September 2020 to February 2021, it supplied goods worth a total of over 430,000,000 Korean won to the debtor, but the debtor did not pay over 108,000,000 Korean won of the goods payment, so the client requested lawyer Joo Youngjae to collect the debt.

Assistance of lawyer Joo Youngjae

In order to obtain an executory title, lawyer Joo Youngjae immediately applied for a payment order, and to preserve property for compulsory execution, he also applied for a provisional seizure of the monetary claim that the debtor had against a third party.

Because the evidence submitted by lawyer Joo Youngjae was clear, the court promptly issued a decision accepting the payment order and provisional seizure. The debtor waived objection, and the payment order was finalized.

After securing the executory title, lawyer Joo Youngjae immediately applied for a seizure and collection order to convert the provisional seizure into a final seizure, and also applied for a property list submission to pressure the debtor.

Then, the debtor, facing bankruptcy due to blocked cash flow, asked the creditor to release the seizure, saying they would immediately pay the goods payment.

In the end, through an agreement between the creditor and the debtor, the creditor was able to recover the full amount of the goods payment claim including litigation costs without further effort, and immediately after receiving payment, the seizure and property list submission application against the debtor were released and withdrawn.