Legal proceedings against a debtor will generally be most appropriate when:

Question

Quizplus · Accepted Answer

Legal proceedings are generally the most appropriate course of action when alternative dispute resolution (ADR) methods have been attempted and failed or are inappropriate for the situation, and when the debt is substantial enough to justify the cost and time associated with legal action. Preserving the relationship between debtor and creditor can often be a consideration in deciding whether to pursue legal action, and the goal is typically to recover the debt rather than to punish the debtor. Therefore, option C is the best choice. Option B is incorrect because writing off a debt may not always be cost-effective for the creditor if the debt is substantial. Option D is also incorrect because the goal of legal proceedings is to recover the debt rather than to punish the debtor.

Legal Proceedings Against a Debtor Will Generally Be Most Appropriate