Find the best debt collection agency in Patna
Submit your claim in Patna now and get 3 free quotes from debt collection specialists.
.svg)
Getting started is as easy as 1,2,3...
.svg)
Our local partners
Explore debt collection experts in Patna for any budget
How to collect an unpaid invoice from a debtor in Patna?
If you need help with gaining compensation in Patna, India, read on! This guide will provide you with all the information needed to pursue debt collection in the area. If you would like the help of a local debt collection business or lawyer, use our free service to receive 3 quotes within 2 days.
Overview of the debt collection process in Patna
In Patna, debt collection typically involves multiple steps. We carefully review each case to take into account the size of the claim, the debtor type, and other variables. Based on those individual details, we create a tailored strategy that guarantees the best possibility of successful recovery.
The image below explains our standard framework for collecting debt in Patna:
Step 1: Find a local collection agency or attorney
Post your case to Debitura and you will obtain 3 quotations from Patna-based debt collection firms eager to help.
Step 2: Pre-legal collections
In Patena, we will start a "campaign" of outreach using contact methods such as email, SMS, letter and any other form of communication to your debtor with the goal of getting them to accept the debt, negotiate a payment plan, or settle the debt outright. Your collection process is totally risk-free with us - you only pay us a success fee if we successfully collect your debt.
Step 3: Evaluation:
If you have taken precursory measures and haven't received payment from the debtor yet, now is the time to analyze the best course of action. We will assess your claim's magnitude, the likelihood of payment, and the laws applicable in Patna, so as to aid you in choosing the most suitable option from the three commonly used next steps in India.
Step A: Surveillance:
If your claim does not exceed 5000$, it is often not economical to pursue more legal procedures. Consequently, we propose that "debt surveillance" be implemented, in which we will continuously reach out to the debtor in question to discuss a friendly agreement. Debt surveillance could be thought of as a prolonged pre-legal phase. Should the prerequisites change, we will unreservedly share advice with you on what steps should be taken.
Step B: Legal collections:
If your claim is significant, we advise beginning legal proceedings after any pre-legal steps have been taken. In general, a claim of 5,000$ or more is considered significant, but that is contingent upon the debtor's capacity to pay and other matters. Depending on your individual situation, the legal procedure employed may be different; the debtor may challenge or simply disregard the pre-legal communication.
For less substantial claims, the legal process is usually more basic. It usually takes one to one and a half years to complete the legal collection procedure, and you may incur a fee to cover legal costs. The cost of legal help can vary in price and quality, so we always suggest obtaining quotes from multiple debt collection attorneys in Patna to estimate costs.
Step C: Debt enforcement:
If you have been acknowledged by the debtor or a court order is present, the bailiff's court can help you enforce your claim. Patna requires a 12-18 month wait time, along with certain fees. These fees depend on the size of the claim, so an estimate can be achieved by uploading the claim to Debitura.
Pre-legal debt collection in Patna
Pre-legal debt collection is the process of attempting to retrieve an outstanding payment before involving the courts. This practise, often referred to as 'amicable collection', presents a number of advantages. You can keep a positive relationship with the debtor, as well as minimising the cost and duration of the procedure. Additionally, there is usually no financial risk as you may only pay a small fee if the debt is recovered.
This refers to the two methods of debt collection. First-party collections refers to when the company or individual pursued the debt collection process themselves. This tends to be faster but can be less successful. Alternatively, third-party collections is when a specialized debt collection agency is used. This method can be more successful for companies and individuals as the agency has the required experience, tools and local knowledge to assist with the collection process.
Having clear documentation of debt and due dates
Utilizing all available communication channels, including emails, mails, and SMSs
Following up on payments in good faith
Taking extra steps to accommodate repayment, such as extending due dates or working out payment plans
Finding other viable alternatives to resolve the debt, such as accepting less than the full payment
We offer a variety of services such as interest fees, late payment charges, as well as other timely recovery solutions that guarantee its success. This is all carefully regulated by the legal guidelines set out by the National Consumer Disputes Redressal Commission.
In addition, we advise our clients to consider the age and size of their claim when setting the interest rate and adding any late payment fees, so that they remain compliant with the law.
Our services provide a stress-free, fast and efficient way to manage debt collection in India. With us, you can rest assured that you are doing business in the most responsible way possible.
Legal debt collection in Patna
When it comes to recovering unpaid debts, all attempts should be made to resolve the matter amicably at first. However, if all amicable steps fail to receive a payment or your debtor disputes your claim, you may need to consider taking legal action. Legal debt collection can be an expensive and lengthy process, so it is advised to only take this route if the debt is of significant value, typically a minimum of $5,000 USD. Obtaining legal counsel can help you assess the situation and determine how you should proceed to receive payment. However, there are some alternative strategies and tactics which could be used if you are not in a position to proceed with a legal case. Consider prosecuting the debtor through arbitration, filing a judgment with the court, or sending the delinquent account to a collection agency for assistance with the recovery. These may be better options if you are not able to afford the legal costs associated with a full legal debt collection process.
Getting the help of local debt collection attorneys in Patna can be difficult and expensive. Debitura simplifies the process for you. We provide you with competitive, no-obligation quotes from our local partners – so you can quickly find the most cost-effective solution and understand the exact steps involved. With Debitura, you can compare up to 3 free quotes from debt collection attorneys, giving you the power to make the best decision for your legal debt collection.
When it comes to legal debt collection, our local partner will reach out to the debtor to establish a payment plan. If this fails, our partner will initiate legal proceedings. Depending on the size of the claim, this could include litigation, debt enforcement, mediation, or bankruptcy proceedings. All proceedings are conducted under Indian civil law and generally take 12-18 months to complete.
Cost of debt collection in Patna
Average success fee for pre-legal debt collection in Patna
Recovering debt in Patna can be a successful endeavor, particularly if it is a pre-legal collection and the debt is recovered. Many Patna debt collectors often charge a success fee, depending on the size of the claim. The average success fee is typically calculated using the size of the claim.
Hourly rate for legal-debt collection services in Patna
In Patna, the legal costs associated with debt collection may include taxes, fees and hourly rates for assistance. The amount that you will have to pay will depend on the complexity of your claim and the hourly rate. Below is a table of the average hourly rates that attorneys charge in Patna for debt collection.
Patna city risk profile
We have examined Patna's critical financial data and extrapolated a risk assessment. You can use this analysis to assess your payment terms and manage your risk when doing business with customers in Patna.
Our analysis concludes that the risk of running a business in Patna is medium-low.
Based on this medium-low score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Patna well. If possible, provide a short credit period or even better upfront payment.
The medium-low risk score is based on the following factors:
.png)
.png)
.png)
.png)
Economic risk in Patna
India is considered to have a medium-high economic risk level with a score of 4 out of 6. The Gross Domestic Product (GDP) is 3173.4 bn. USD, making it the seventh largest economy in terms of size. The country has a fast-growing economy, annually increasing by 8.95%. With a GDP per capita of 2277 USD, the citizens of India lack purchasing power due to its rank of 131 out of 183 countries. The inflation rate in 2021 is at 5.1%, considered medium-high, and the business credit interest rate is at 8.7%. Combined, these characteristics determine India's economic risk.
Business risk in Patna
Patna, India is considered to have a medium-high risk business environment with an overall economic freedom index of 57 out of 100 according to analysis of property rights index, freedom from corruption index, fiscal freedom index, business freedom index, monetary freedom index, trade freedom index, investment freedom index, and financial freedom index. Property rights index, which is considered quite low in Asia, is 59 in Patna while the business freedom index is 77, a decent score for a country placed in Asia. While the risk score is average in Asia, it is important to note the overall economic freedom index, which requires factors such as the rule of law, regulatory efficiency and market openness for India as a whole.
Political risk in Patna
Patna, the capital city of the Indian state of Bihar, is an area of medium political risk. Governance and political stability indicators portray a low score of -0.08 on the rule of law index. Government effectiveness and control of corruption have weak scores of 0.28 and -0.29 respectively, as well as a political stability index rated at -0.62. Additionally, corruption levels are high, with a score of 40 on the Corruption Perceptions Index, and the shadow economy is 17.89% of India's GDP. This all contributes to the overall medium political risk in Patna. When transacting business in Patna we recommend charging upfront payments due to the difficulty of enforcing commercial contracts.
Commercial risk in Patna
Patna, the major city in India, boasts a low commercial risk score of 1 out of 4, much lower compared to the average in all of Asia. This score is determined based on the country's international trade relationships, including its export of goods and services (20.81% of GDP annually), import of goods and services (22.86% of GDP), trade balance (-2.05% of GDP) and foreign exchange reserves (638.48 billion USD). Together, these features demonstrate that imports surpass exports, but the annual growth of exports is growing rapidly. Residents and businesses in Patna can rest assured that the city's commercial environment is a secure and profitable one.
Financial risk in Patna
Financial risk in Patna, India has been rated at 2 out of 4, a low risk outcome. This result is below average for Asian countries. Patna's banking system and its stability have been found to have strong positive influence on the financing risk. Credit information sharing for Patna is a medium-high 7 on a scale from 0 (low) to 8 (high). This is another indicator of Patna's low financing risk, and allows creditors to accurately assess creditworthiness of customers. Interest rates of 8.7%, and legal rights of 9 out of 12 on a scale of 0 (weak) to 12 (strong) indicate the city has a secure, reliable financial system.
Looking for more detailed information? Then have a look at our country guide.
Read full country guide
.svg)