INFOGRAPHICS: THINGS TO REMEMBER/DO FOR DEBT RECOVERY






The above infographic will give you a few important things to remember or do before you can file a debt recovery claim against your debtors.

1.    The time limit to file a debt recovery action is 6 years

It's important to note that claims can have an expiration date. The law sets a time limit of 6 years    from the due date of payment for creditors to take legal action against debtors. After this period, creditors are no longer allowed to file a lawsuit to recover the debt. This limitation period exists to discourage creditors from delaying action and to ensure that litigation has a definite conclusion.

2.    Whom do you intend to file your suit against?

To avoid your case being struck out, it is crucial to accurately identify the appropriate debtors who have a genuine interest or liability related to your case. While you have the freedom to name or sue multiple defendants, it is important that they are directly involved in the subject matter. Additionally, the methods for recovering debts can differ based on the defendant's entity type, such as individual, partnership, or company, influencing the enforcement options available to the creditor.

3.    Do you have enough evidence?

The judge will carefully assess the evidence supporting your claim. As the plaintiff, it is your duty to convince the court that your claim is valid and well-supported by evidence. When preparing your case, it is essential to diligently collect all the necessary documents and evidence to substantiate your argument.

4.    Do you need to do anything before filing a suit? 

In essence, if a party fails to make the required payment according to a contract, it constitutes a breach of contract. However, before pursuing legal action, it is crucial to carefully review the contract for any alternative dispute resolution clauses or other necessary steps that need to be followed.



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