Your debtor has not repaid you and you are looking for his reimbursement? Try to obtain an IOU from him! Lawrence explains how to do so.
First of all, what is an IOU?
By definition, an IOU plays an important role in a debt situation, when a debtor does not pay his bills and legal action has to be taken.
It is a written and signed document in which the debtor acknowledges that he owes a certain amount of money or a certain amount of property to his creditor.
The law requires an act by which the debtor makes an unconditional promise to pay or pay off the debt.
The acknowledgement of debt must imperatively include :
- A handwritten signature;
- The amount due, in figures (preferably in Swiss francs).
Don’t forget to include a payment deadline, so that you don’t have to wait forever for repayment!
What is the purpose of an IOU?
The acknowledgement of debt allows you to obtain a provisional release of the opposition to the order to pay sent to the debtor. This will avoid long and costly legal proceedings for the creditor to recover his due.
How to obtain an IOU?
We strongly recommend that this document be drawn up at the beginning of the contractual relationship between creditor and debtor. This will avoid possible litigation and provide additional security to the creditor.
If this has not been done and a debt collection procedure is imminent, we have only one word to say: dialogue!
It will always be more beneficial for both parties to obtain an IOU than to go through a lengthy, complex and expensive ordinary debt enforcement procedure.
Still don’t know what to do or how to write an IOU? Need to convince an uncooperative debtor?
Download your IOU template or let Lawrence write it for you! Our team will assist you in all your legal steps!