There are several ways in which a debt can be recovered. Which is chosen depends on:
The ability of the debtor to pay;
The whereabouts of the debtor's assets; and
The speed and cost of the process.
It is always important to act fast in choosing the court, insolvency or self-help process that will bring the client the right result in the speediest and least costly manner. It also is crucial to ensure that you are not throwing good money after bad. There must be a prospect that the procedure you are following will lead to money returned and not a winding-up order.
Debt recovery is often closely linked with insolvency. Businesses and individuals rarely do not pay unless they cannot pay. Spotting the onset of insolvency is crucial as opportunities to make full recovery may be missed if not taken in time.