Topics on Debt Recovery that can help for an Informed Decision.
DEBT RECOVERY: The Game of Loans
Know everything about the debt recovery cases with this legal guide!
Matters related to money go beyond the values of trust! ‘Debt recovery’ relates to an act of recovering money which is overdue or pending. A debt arises as soon as an individual or entity fails to pay the amount due from a borrowing or a written/ oral agreement.
Businesses indulge in promotional gimmicks to increase clientele and sometimes, end up taking a risky decision - providing products on the promise of future payment. Even if there exists an agreement which stipulates the time and process of the due payment, the client may fail to do so.
The business or person who has forwarded the loan or provided the money, suffered a loss, is called a ‘creditor’ and the individual who has abstained from paying the consideration is called a ‘debtor’.
Our law gives a comprehensive and substantial opportunity to a creditor (i.e. the one who lends the money) to recover loans from a debtor (i.e. the one who takes the money). Trying to amicably settle a recovery suit is the first option to a creditor. After failed attempts of amicable settlements, the creditor also has the option of filing a recovery suit in a court of law.