By Omowunmi Oladokun
Owe no man” is not just a principle but a foundation that solidifies business and personal relationships.
ย ย Debt is a sum of money or something of great value owed. There is no debt without owing something belonging to another. Debt may arise in unexecuted contract, failed business relationships e.t.c and they can be freely collected or recovered within time.
ย ย Debt recovery requires the services of a third party or agency to demand the payment of the fees owed while Debt Collection involves personal demand by the Creditor. For example some banks and financial institutions have debt collection department that places demand on debtor from time to time.
ย ย Law offices ย may aid a creditor to approach the court after placing several demands which seems futile. The letters of demand together with other documents and correspondence forms the pre action protocol bundle that is acceptable to the court before listing the matter for hearing. The court to be approached is determined by the size of the debt and the nature of the business or contract/ dealing that the debt was incurred.
ย ย ADR services may also be employed for Debt recovery through negotiations and conversation on the means most suitable to the debtor to repay and refund the debt.
ย ย The question at this point is what happens to bad debt?. When the debtor is bankrupt and cannot pay his debt
ย Legally, after the hearing of the matter and the existence of the debt has been determined. The court may through the means of instalmental payment, writ of fifa or garnishee recover the debt owed.
ย ย It suffices to state at this point that a police officer is not a suitable personnel or agency to recover debt. Engaging the services of the police for debt recovery is illegal and practically unacceptable by the court.
ย Finally, by statute, there is a time limit of six (6) years for the recovery/collection of the debt after which the debt becomes obsolete and unrecoverable with the exception of corruption, deciet and other factors.
