Late or unpaid payments can affect your business’s cash flow and operations. Chambers of Koon assists businesses in recovering commercial debts through strategic legal action.
INTRODUCTION
Chambers of Koon is a debt recovery and debt collection law firm helping businesses and individuals recover outstanding debts efficiently and in accordance with Malaysian law. From issuing letters of demand and negotiating settlements to commencing court proceedings where necessary, we help you recover what is owed while protecting your legal and commercial interests.
OUR EXPERTISE
If you need a lawyer for debt recovery or a lawyer for a debt collection lawsuit, Chambers of Koon provides practical legal solutions to help businesses recover outstanding debts and take timely action against non-paying parties.
Garnishee Proceedings
If the debtor has money held by a bank or is owed money by another party, we can apply for a court order to recover those funds and put them towards your outstanding debt.
Writ of Seizure and Sale
If a debtor still refuses to pay after a court judgment, we can apply to have their assets seized and sold to recover the amount owed.
Judgment Debtor Summons (JDS)
Where a debtor’s financial position is unclear, we can require them to attend court and disclose their income, assets, and other financial information to assist with enforcement.
Winding-up & Bankruptcy Proceedings
If a company or individual is unable to repay outstanding debts, we can advise on and commence winding-up or bankruptcy proceedings where appropriate. These legal remedies can help your business take further action to recover unpaid debts when other recovery efforts have been unsuccessful.
Customers Refusing to Pay Invoices
Recover unpaid invoices where customers fail to pay for goods or services provided despite payment being due.
Contractors Withholding Payments
Pursue outstanding payments arising from construction projects, subcontracting arrangements, or completed works.
Unpaid Progress Claims
Recover certified or outstanding progress payments owed under construction contracts.
Breach of Contract
Take legal action where a breach of contract has resulted in unpaid invoices, outstanding payments, or other financial losses.
Unpaid Purchase Orders
Assist businesses in recovering sums owed for goods delivered under accepted purchase orders.
Outstanding Service Fees
Recover unpaid professional or service fees across a range of industries and commercial engagements.
Disputed Contractual Payments
Advise and represent businesses where payment disputes arise over contractual obligations, completed work, or deliverables.
Late Payment by Corporate Clients
Help businesses recover overdue payments from corporate clients while pursuing practical and commercially sensible solutions.
WHY CHOOSE US
As a debt recovery law firm, we deliver practical, value-driven legal solutions for businesses across Kuala Lumpur, Petaling Jaya, and Ipoh. Here’s what sets us apart.
Our attorneys have worked at large law firms. We capitalize on our large law firm to provide the highest level of service to our clients.
We offer big-firm quality without big-firm fees. By leveraging technology and keeping overhead low, we pass the savings onto you.
We combine legal expertise with practical, business-driven strategies to achieve your goals efficiently and creatively.
We move at the speed of business. Our nimble team ensures personalized attention, quick turnarounds, and results that exceed expectations.
TESTIMONIALS
1. When should a business engage a debt recovery lawyer?
Ideally, as soon as an invoice becomes significantly overdue and informal follow-ups have failed. Early legal involvement allows a Letter of Demand to be issued promptly, helps preserve your rights under the Limitation Act 1953, which generally provides six years from the due date to commence legal action, and improves the chances of recovery before the debtor's financial position worsens.
2. Is a Letter of Demand required before legal action?
It is not a strict legal requirement before filing a civil suit, but it is standard practice and often a practical first step. A Letter of Demand puts the debtor on formal notice, may encourage voluntary payment, and can serve as a precursor to a statutory demand if bankruptcy or winding-up proceedings become necessary.
3. Can interest be claimed on overdue payments?
Yes, in most cases. If the contract or invoice specifies an interest rate for late payment, that rate can generally be claimed. Where no rate is specified, the court has discretion to award interest on the judgment sum under the Rules of Court 2012.
4. How long does commercial debt recovery take?
This depends on whether the debtor contests the claim. Straightforward cases resolved through default or summary judgment may conclude within a few months. Contested claims that proceed to trial, or cases requiring enforcement action, can take longer.
5. What happens if the debtor ignores the court judgment?
A judgment does not guarantee payment on its own. Enforcement options include a Judgment Debtor Summons to examine the debtor's financial position, garnishee proceedings against bank accounts, a Writ of Seizure and Sale against assets, and, for larger debts, bankruptcy proceedings for individuals or winding-up proceedings for companies.
6. Is there a minimum debt amount?
There is no minimum debt amount to pursue debt recovery in Malaysia. However, claims below RM5,000 generally fall under the Magistrates' Court small claims procedure, where legal representation is generally not permitted.
7. What documents are needed?
You will typically need the signed contract or agreement, purchase orders, invoices, delivery orders or proof that goods or services were provided, a statement of account showing the outstanding balance, and any correspondence with the debtor, such as emails, letters, payment reminders, or acknowledgements of the debt.
8. Can my case be resolved without going to court?
Yes, and this is often the preferred outcome. Many cases are resolved through a Letter of Demand, direct negotiation, or mediation without filing a suit. This approach is usually faster, more cost-effective, and helps preserve business relationships. Court action is generally necessary only when the debtor remains unresponsive or disputes the debt without valid grounds.
Our debt recovery lawyers in Malaysia help you recover overdue payments while preserving important business relationships. Get in touch today to discuss your options.
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