It served me a summons without issuing any reminder to me to pay the amount.

I made many attempts to clarify the disputed sum, but my creditor turned me away, so I had no choice but to go to his lawyer for clarification.

His lawyer asked me to write to him while waiting for his client's reply. I wrote in immediately but was shocked to receive a letter stating that judgment in the matter had been entered.

My creditor has inflated the bill with the lawyer's fees and interest charges to more than twice what was owed, and has not given me a chance to present my intention to repay the debt. Now, a writ of seizure has been issued on my company.

The lawyer's unethical behaviour and the inflated amount have left me feeling deceived. I feel helpless because I can't afford a lawyer. How can I get help to deal with such unfair practices?

Do I just wait for my creditor's unjust seizure of my company's assets? And what else can my creditor do to me and my company following the seizure of the assets?

A WE believe that a writ of summons must have been served on your company. It would have been stated in the writ of summons that you are required to enter appearance within eight days of service.

You may enter such appearance without having to appoint a solicitor. Creditors are not required to send a reminder before issuing a writ of summons.

We note that you entered into negotiations with the plaintiff's solicitor after the writ was served on you. He is not legally obliged to let the matter be during negotiations and is free to enter judgment if you fail to respond within the deadline.

After judgment has been entered, the solicitor can enforce it by issuing a writ of seizure and sale to seize the firm's properties to satisfy the debt.

Under the rules of court, the legal cost that your creditor would be entitled to claim from you for obtaining judgment is limited to $1,000 if the writ was filed at the Magistrates Court, $1,800 if filed at a district court and $2,300 if filed at the High Court.

This legal cost excludes disbursements such as filing fees, stamp fees, postage and transport expenses incurred by the plaintiff's solicitor.

Interest charged at a rate of 5.33 per cent is payable on the judgment sum from the date of the writ to the date of entering judgment, or 6 per cent if judgment was obtained before April 1. A similar interest is chargeable on the legal cost from the date of judgment to the date of payment. The legal cost of the writ of seizure and sale depends on the debt amount and the charges of the plaintiff's solicitor.

If your creditor is unable to recover the debts and the amount owing to him is $10,000 or more, he may apply to wind up the company.

If you are disputing the amount of debt owing, then you may wish to apply to court to set aside the judgment and to stop the seizure of assets.

If you are dissatisfied with the conduct of the plaintiff's solicitor or have questions about his legal cost, you may seek the help of the Law Society.

Those who cannot afford a lawyer may approach the Legal Aid Bureau, but if action has been commenced against your company, which looks to be so in this case, it may not be able to help you.

Mr K. Anparasan
Deputy Managing Partner and Head
Litigation Department
KhattarWong

Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to lorna@sph.com.sg