What is a recoverable debt?

What is a debt?

First of all, let us define just what adebtin fact is. The debt represents a demand fromone party(thecreditor) for the execution of the counterpart of a given payment or service toanother party(thedebtor). It is thus a matter of that to which the creditor is entitled and, therefore, of that which he may demand from his debtor. Conversely the debt also describes the debt that the debtor owes to his creditor.

What is a recoverable debt?

However, in order to acquire a recoverable character, a debt must go beyond this basic definition. In order to be considered as recoverable, the debt must satisfy the following 3 conditions:

The debt must becertain

For a debt to be “certain” it must issue or arise from an existing debt. It must therefore be real and exist in actual fact. More specifically, the ordered goods must actually have been delivered and the requested service must actually have been provided. Otherwise the debtor will not necessarily have to pay the amount demanded by the creditor.

The debt must beliquid

For a debt to be considered as “liquid” the amount of the debt must have been clearly defined beforehand. It therefore cannot be any kind of bracket-price system and the amount must be a fixed sum. This latter must also be stated on theinvoicesent by the creditor to the debtor.

The debt must bedue

A debt becomes “due” quite simply once the allotted payment time is exceeded. From that point on, the creditor may institute proceedings to recover the amount that is due to him. The recovery procedures undertaken may be eitheramicable(Letter of Reminder,telephone call,home visit, …) orjudicial. The creditor may equally well engage the services of acollection companyto manage the recovery of his debts.

Conclusion

What is a recoverable debt? Arecoverable debtmust be:

Certain;
Liquid;
Due.

For further information about the different characters that a debt may present you can consult our publications on:

Obviously, not all debts are necessarily recoverable. If you require our assistance in managing the recovery of your debts, contact us bye-mailatsales@tcm.beor bytelephoneon +32 16 74 52 04.

What is a debt?

First of all, let us define just what adebtin fact is. The debt represents a demand fromone party(thecreditor) for the execution of the counterpart of a given payment or service toanother party(thedebtor). It is thus a matter of that to which the creditor is entitled and, therefore, of that which he may demand from his debtor. Conversely the debt also describes the debt that the debtor owes to his creditor.

What is a recoverable debt?

However, in order to acquire a recoverable character, a debt must go beyond this basic definition. In order to be considered as recoverable, the debt must satisfy the following 3 conditions:

The debt must becertain

For a debt to be “certain” it must issue or arise from an existing debt. It must therefore be real and exist in actual fact. More specifically, the ordered goods must actually have been delivered and the requested service must actually have been provided. Otherwise the debtor will not necessarily have to pay the amount demanded by the creditor.

The debt must beliquid

For a debt to be considered as “liquid” the amount of the debt must have been clearly defined beforehand. It therefore cannot be any kind of bracket-price system and the amount must be a fixed sum. This latter must also be stated on theinvoicesent by the creditor to the debtor.

The debt must bedue

A debt becomes “due” quite simply once the allotted payment time is exceeded. From that point on, the creditor may institute proceedings to recover the amount that is due to him. The recovery procedures undertaken may be eitheramicable(Letter of Reminder,telephone call,home visit, …) orjudicial. The creditor may equally well engage the services of acollection companyto manage the recovery of his debts.

Conclusion

What is a recoverable debt? Arecoverable debtmust be:

Certain;
Liquid;
Due.

For further information about the different characters that a debt may present you can consult our publications on:

Obviously, not all debts are necessarily recoverable. If you require our assistance in managing the recovery of your debts, contact us bye-mailatsales@tcm.beor bytelephoneon +32 16 74 52 04.