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7.12.2 When to consider civil recovery
188.8.131.52 — Civil recovery action may be considered where:
- the statutory limitation period permitted in the State in which recovery is sought has NOT expired (see this manual's Section 184.108.40.206)
- limitations on a current payment are not possible or satisfactory
- payment notice action is not possible or satisfactory
- the debtor has assets which can be realised to repay the debt
- a debtor has failed to respond to correspondence requesting repayment
- a debtor has failed to honour an agreement to pay a debt; and
- it is cost effective to do so.
220.127.116.11 — Before proceeding with formal legal action to recover a debt, the debtor's circumstances should be carefully examined to determine what action, if any, can be taken to recover the debt. The first step should be an examination of the debtor's financial circumstances by forwarding to them a Statement of Financial Circumstances (Form D2708) and a Statement of Circumstances (Form D2589).