If any individual or organization owes you money, you need to take certain steps within the law to recover the money. This is called debt recovery and it is a legal process. Before discussing the different forms of debt recovery, it is important to understand exactly what constitutes a debt. In simple terms, a debt can be described as an amount of money owed to one party by another one. This can be a result of un-repaid loans, unpaid goods or other commercial transactions. If you owe money because of commercial transactions, the creditor might institute commercial debt recovery process to get the money back.
Understanding the Rights of the Debtor
In commercial law, legal experts know that debt is an everyday part of the business world. Many successful businesses take out loans; buy goods on credit and lease equipment and machinery. For this reason, debtors have certain rights under the law. If people owe money or have not paid for goods bought on credit, this does not mean that the creditor should harass the debtor unduly. A creditor can take certain steps to recover a debt in accordance with the law. These steps include the ones below.
In the business world, everything is negotiable and this includes debts. In the event that a debtor is unable or unwilling to repay his or her debts, the creditor might opt for a negotiated settlement. In this case, both parties sit down and discuss the matter in an amicable manner. The creditor may write off some of the money owed by the debtor on the condition that the debtor repays the balance within a certain period.
Debt Recovery from Insolvent Debtors
It is not always possible to recover if the debtor does not have the financial capacity to repay the money. In some cases, a debtor might incur substantial losses in the business world and this could lead to insolvency. In this case, the debtor can file for bankruptcy. When this happens, the creditor may not be able to recover his or her money.
Why You Might Need Debt Recovery Service
In the business world, some people do not have integrity. There are instances where debtors may try to evade meeting their obligations even if they can afford to repay the money. A deliberate refusal to pay legitimate debts may constitute loan fraud and this is an offence before the law. Even if the debtor is not guilty of loan fraud, a debt is an obligation and it must be paid if the debtor has the means. If you have a chronic debtor who has refused to repay the money he or she is owing you, you should consider hiring a debt recovery service to help you get the money in question.
Debt recovery firms are professionals in the business of getting debtors to repay money. They have many years experience in the business and they have professional debt collectors who may succeed where you have failed. Get in touch with these experts and they will help you recover your money.