Demystifying The Debt Collection Process

Before you make the all-important decision on the best debt collection method, including whether debt recovery software is right for you, it’s important to understand the process of debt collection in New Zealand.

There are four stages to the debt recovery process and getting outstanding invoices paid.

1. Letter of Demand
Communication in the form of a debt collection letter is sent to the debtor advising them the debt is outstanding and requires payment. They need to be given a reasonable period of time to pay the amount, which is usually seven days from the date of the letter.