Mary, a friend who works at a legal firm, told me that she has been so busy drafting demand letters to send out to companies that defaulted on payment whether for machinery that was rented or for work that was done and not paid after a reasonable amount of time. Times are really this bad, huh? Or is this the effects of the recent economic downturn?
According to Mary, sometimes, creditors would try to collect their monies with the help of Collection Agencies first before they take legal action. Chinese people usually do not like to resort to court cases but the cases that are handled by Mary have already reached a dead end and the creditors have no choice but to let the law take care of it.
I don't know if these companies that defaulted on payment really cannot pay up or if they just refuse to pay since going through the legal process takes such a long time because of red tape. Perhaps they want to gain some time first and then eventually settle their debt. Mary says the amount owed is usually not that big, surprisingly. Perhaps these debtors know that it's not that easy to go into bankruptcy?
According to Mary, sometimes, creditors would try to collect their monies with the help of Collection Agencies first before they take legal action. Chinese people usually do not like to resort to court cases but the cases that are handled by Mary have already reached a dead end and the creditors have no choice but to let the law take care of it.
I don't know if these companies that defaulted on payment really cannot pay up or if they just refuse to pay since going through the legal process takes such a long time because of red tape. Perhaps they want to gain some time first and then eventually settle their debt. Mary says the amount owed is usually not that big, surprisingly. Perhaps these debtors know that it's not that easy to go into bankruptcy?
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