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Debt Recovery Attorneys for Businesses and Individuals

PM & Co assists creditors with professional, compliant and commercially sensible recovery of unpaid debts.

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Legal context

Debt Recovery

Debt recovery deals with the lawful collection of unpaid amounts owed under invoices, loans, acknowledgements of debt, leases, credit agreements, services, goods supplied or judgments. The correct procedure is often as important as the merits of the matter. A missed notice, incorrect court process or poorly drafted document can affect the client's legal position, costs and available remedies.

The main legal framework includes contract law, the Prescription Act 68 of 1969, Magistrates' Courts and High Court rules, the National Credit Act where applicable, the Debt Collectors Act, emoluments attachment procedures and the Prescribed Rate of Interest Act. Depending on the debt, the matter may involve a letter of demand, settlement negotiations, the Magistrates' Court, the High Court or post-judgment enforcement. The correct route must be selected at the start because the amount, agreement, debtor profile and evidence affect the process.

Clients usually need an attorney when a debtor has failed to pay, a business needs to improve cash flow, a creditor needs summons or judgment, a debtor disputes the balance, or a judgment must be enforced. Early legal input helps identify the client's rights, the correct process, the evidence needed and whether negotiation, mediation, urgent relief or formal proceedings are appropriate.

How PM & Co can help

  • Assess whether the debt is enforceable, prescribed or disputed.
  • Prepare letters of demand and settlement proposals.
  • Issue summons and manage defended or undefended claims.
  • Obtain and enforce judgments where appropriate.
  • Structure acknowledgements of debt and payment arrangements.

Common matters we assist with

  • Unpaid invoices and service fees.
  • Loan, rental and supplier debt.
  • Acknowledgements of debt and settlement defaults.
  • Credit agreement enforcement and section 129 notices.
  • Default judgment and warrant processes.
  • Emoluments attachment and garnishee-related advice where lawful.
  • Tracing documents and debtor information review.

When to seek legal help urgently

  • The debt is close to prescribing.
  • The debtor is selling assets, closing the business or avoiding service.
  • A major customer has stopped paying multiple invoices.
  • You need to issue NCA notices before enforcement.
  • The debtor has defended the claim or made a counterclaim.
  • A judgment has been granted but payment has not been made.

Legal framework

The right route matters.

Legal matters often turn on the correct statute, court process, notice, evidence and deadline. PM & Co uses the consultation to understand your story first, then connects the legal framework to your specific facts and documents.

What happens next

A structured route from concern to action.

Let PM & Co review the debt before delay weakens your recovery position.

  1. 01

    Step 01

    We confirm the documents needed to prove the claim.

  2. 02

    Step 02

    We check prescription, jurisdiction and whether the National Credit Act applies.

  3. 03

    Step 03

    We advise on demand, settlement or summons.

  4. 04

    Step 04

    We manage litigation steps and settlement negotiations.

  5. 05

    Step 05

    If judgment is granted, we advise on lawful enforcement options.

Documents checklist

Documents that may later assist

For the first consultation, the most important thing is to explain what happened, what outcome you need and whether there are urgent dates. After we understand the matter, we will confirm which documents are actually required.

  • Contract, quote, purchase order, credit application or signed mandate.
  • Invoices, statements and proof of payment received.
  • Delivery notes, PODs, completion certificates or proof of services rendered.
  • Debtor contact details, identity number or company registration number.
  • Demand letters, emails, WhatsApp messages and admissions of debt.
  • Acknowledgement of debt, suretyship or settlement agreement.
  • Credit agreement and section 129 documents, if applicable.
  • Details of any disputes, defects alleged or counterclaims raised.
  • Judgment, warrant, sheriff's return or previous court papers, if any.
  • A timeline showing due dates, payment promises and defaults.

This content is general information about debt recovery under South African law. It is not advice on any specific debt, and an attorney must review the documents, dates, prescription position and debtor circumstances.

Questions clients ask

Debt Recovery FAQs

When should I hand over a debt to an attorney?

A debt should be reviewed as soon as payment is overdue and internal follow-up has failed, especially where the amount is material, the debtor disputes liability or prescription is approaching. Early legal action can preserve evidence and improve recovery prospects.

What is prescription?

Prescription is a legal time limit after which a debt may become unenforceable if not interrupted. The period depends on the type of debt and events such as payment, written acknowledgement or service of process. Dates must be checked carefully before deciding whether to sue.

Is a letter of demand required before summons?

A demand is often commercially sensible and may be legally required in certain matters, especially where legislation or contract terms require notice. For credit agreements regulated by the National Credit Act, specific statutory notices may be necessary before enforcement.

Can I claim interest on an unpaid debt?

Interest depends on the contract, applicable legislation and the prescribed rate where no agreed rate applies. The calculation should be supported and clearly pleaded. Incorrect interest claims can create disputes and delays.

What happens if the debtor defends the summons?

A defended matter proceeds through pleadings, possible summary judgment in appropriate cases, discovery, pre-trial steps and trial unless settled. The strength of the documents and whether the defence is genuine are important. An attorney can advise on strategy and cost.

Can I recover legal costs from the debtor?

A successful party may recover certain taxed or tariff-based costs, and a contract may provide for attorney-and-client costs. However, recovered costs do not always equal the full legal spend. Cost risk should be discussed at the beginning.

What is an acknowledgement of debt?

An acknowledgement of debt records the debtor's admission, repayment terms, interest, costs and consequences of default. It must be drafted carefully. A weak or vague document can create enforcement problems.

Can judgment be enforced immediately?

After judgment, enforcement depends on the type of judgment, whether payment is made, whether rescission or appeal steps are taken, and what assets or income the debtor has. Execution must follow the proper court process.

What if the debtor has no assets?

A judgment is only useful if it can be enforced or if the debtor later acquires assets or income. Before litigation, a creditor should consider the debtor's ability to pay, available information and commercial cost-benefit.

Can a creditor attach a debtor's salary?

Salary attachment is regulated and requires compliance with court procedures and statutory safeguards. It should not be attempted informally. Proper advice is needed to avoid unlawful deductions or defective orders.

Let us help you choose the right next step.

Share the documents you have, the deadline you are facing and the outcome you need. PM & Co Inc Attorneys will guide you to the correct consultation route.

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