Home » Finance » Credit

3 Effective Schemes To Recover Debt

Aug 17, 2007
Debts incurred if not managed effectively go on accumulating and this can lead to the debtor ultimately turning bankrupt. Nonpayment of the debts can also be severely frustrating and stressful to the lender. These problems are more significant in the corporate and business sector. Thus businessmen and lenders arm themselves with the following strategies to recover debts:

Firstly, the lender may call the debtor, negotiate and set up a deadline by which the debt should be paid off. The debtor usually tries to portray an intimidating attitude. If the calls are left unanswered or the debtor fails to meet the deadline the lender can go to the court.

The court employs three methods to recover debts. They are Small Claim Process (SCP), Warrant of Execution (WoE) and Section 65 proceedings. The court determines the method to be used depending on the money owed.

Small Claim Process (SCP):
The SCP being straight forward and cheap is the most widely accepted method. The disputes can be settled using the fast-track process or the multi-track process. Generally amounts above 5,000 pounds are dealt with the fast-track process while those in excess of 15,000 pounds are dealt with using the multi-track process. In the instances where the creditor may be given a default judgment with respect to the debtor the creditor has two options. He may appeal to the court to issue a WoE to the debtor or his property. The other remedy is to refer to Section 65 of the Magistrate's Court Act.

Warrant of Execution (WoE):
Here, the court places the responsibility of auctioning off the assests of the debtor and property with the sheriff. The debtor is supposed to surrender his real estate documents as collateral. First the movable assets like vehicles or furniture are auctioned followed by the immovable assets like real estate. The public is invited to such auctions and the assets are sold to the highest bidder. The money raised is then given to the creditor. If that money does not successfully recover the loan the debtor is asked to make some other arrangements to get the additional money.

Section 65 Proceedings:
If the debtor and the creditor have reached a conclusion to settle the debt in smaller installments, the court is sanctioned to make this a court order. Now, in accordance with section 65 (A), if the debtor fails to pay the amount, the creditor can summon him to court. A particular day is decided for the court hearing where both the debtor and creditor should be present to defend themselves. If the debtor stays absent on the predetermined day, he can be charged with contempt and even imprisoned.

These are the ways in which a lender can effectively recover his money.
About the Author
Jay Moncliff is the founder of http://debtreliefdeals.debtrelief2000.info ; a website specialized on
card credit debt management , resources and articles. Additional info on card credit debt management , consolidation debt online at: consolidation debt online .
Rating:
Please Rate:
(Average: Not rated)
Views: 102
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources