Recovery of debts: all you need to know!

What is therecovery of debts? If you are asking yourself that question, this article is written for you! We will explain to you what recovery of debts is all about and give you the keys and most important terms to know to find your way around. In fact, the words and their definitions have their importance in the debt recovery.

Recovery of debts: definition

  The termrecovery of debtsrefers to all the various actions that acreditormust initiate in order to obtain payment of hisdebtfrom hisdebtor. This definition, while clear enough, may sometimes perplex the layperson who does not necessarily understand the jargon of the recovery sector. In other words,recovery of debtsis a procedure that is set in motion when acreditorhas not entered into accounts the payment that is due to him as valuable consideration for a service provided. That creditor therefore proceeds to the necessary measures to recover that amount. It should also be noted here that the term“recovery”comes from the verb“to recover”(and not from “re-cover”), meaning “to come into possession of what was once lost” and, therefore, in the case of a debt, to receive payment of a due sum.    

The objects of recovery of debts

  To acquire a good command of the codes of recovery it is necessary to make distinction between the terms that apply to the objects of recovery. A sum of money may be described as aclaimor, equally well, as adebtaccording to whether looked at from the creditor’s or debtor’s perspective.  

• Claim

Aclaimrepresents the right for the creditor to demand the remittance of a sum of money owed to him by the debtor. It should also be noted that a claim may berecoverable,doubtful orirrecoverable.Complete definition of the debt 

• Debt

Conversely, thedebtis the sum of money owed by the debtor to his creditor.Complete definition of the debt   

The actors involved in the recovery of debts

When debt recovery proceedings are instituted, two main parties are involved: thecreditorand thedebtor.  The main actors

• Creditor

Thecreditoris the party that holds a lien over another person (the debtor). In sum, this is the actor to whom the money is due. It is therefore the creditor who will make the first moves for recovery vis-à-vis the debtor to recover the sum of money owed by the latter. Note also that the creditor may be eitherpreferred or chirographic.Complete definition of the creditor 

• Debtor

Thedebtoris therefore the party in default of payment who, consequently, has a debt towards the creditor. The necessary recovery proceedings instituted by the creditor to recover the sum of money will therefore be directed against the debtor.Complete definition of the debtor   The intermediariesMany creditors entrust the management of their debtors to a third party, an agent or intermediary.  

• Recovery company

Arecovery companyis an intermediary that assists the creditor, at the latter’s request, in recovering his debt from his debtor. The distinguishing characteristic of the recovery company is that it tries to resolve the problem of payment of its clients (the debtors) by following procedures ofamiable recovery, and thus without referring the case to a court of law.Complete definition of the recovery companyYou can also read our article “How does a recovery company work?”  

• Bailiff (process server)

A bailiff or process server is a ministerial officer or, in other words, an independent public servant. Although specialized in judicial recovery, he may also be involved in amicable debt recovery. However, unlike the recovery company, the bailiff does not defend either of the two parties. In fact, he is bound by a duty of impartiality and must therefore remain neutral.Complete definition of the bailiff (process server) 

• Lawyer

Once legal proceedings are instituted, your lawyer will be your only representative for your actions at law. Generally, if you enlist the aid of your lawyer for debt recovery, it is because all attempts at amicable, out-of-court settlement have failed. Do not hesitate to consult our article: “A lawyer, a bailiff or a recovery company?”    

Debt recovery proceedings

 Once default on payment is detected, recovery proceedings may be set in motion. Distinction is made between two kinds of recovery proceedings:amicableandjudicial. 

• Amicable recovery

The termamicable recoveryapplies to all actions and techniques employed by acreditorto recover hisdebtfrom hisdebtorwithout proceeding to legal measures. It is, therefore, a phase of negotiation between the creditor and his debtor. Several methods may be used for theamicablerecovery of money due to the creditor:

• Letter of reminder of payment;
• Follow-up telephone call;
• Visit to the debtor.

Complete definition of amicable recoveryYou can also read our article: “How do amicable recovery proceedings work?”  

• Judicial recovery

If the various amicable actions prove to be unproductive or ineffective, the creditor may seek redress before a court of law.Judicial recoveryrefers to the procedure that consists of referring the matter to the competent court in order to recover the unpaid sum of money.Complete definition of judicial recoveryObviously, the recovery of debts, like many other sectors, has its own jargon. That’s why we suggest that youconsult ourglossarygrouping the definitions of numerous terms associated with recovery.     Do not hesitate to contact us bye-mailatsales@tcm.beor bytelephoneon +32 16 74 52 04.

Recovery of debts: all you need to know!

What is therecovery of debts? If you are asking yourself that question, this article is written for you! We will explain to you what recovery of debts is all about and give you the keys and most important terms to know to find your way around. In fact, the words and their definitions have their importance in the debt recovery.

Recovery of debts: definition

  The termrecovery of debtsrefers to all the various actions that acreditormust initiate in order to obtain payment of hisdebtfrom hisdebtor. This definition, while clear enough, may sometimes perplex the layperson who does not necessarily understand the jargon of the recovery sector. In other words,recovery of debtsis a procedure that is set in motion when acreditorhas not entered into accounts the payment that is due to him as valuable consideration for a service provided. That creditor therefore proceeds to the necessary measures to recover that amount. It should also be noted here that the term“recovery”comes from the verb“to recover”(and not from “re-cover”), meaning “to come into possession of what was once lost” and, therefore, in the case of a debt, to receive payment of a due sum.    

The objects of recovery of debts

  To acquire a good command of the codes of recovery it is necessary to make distinction between the terms that apply to the objects of recovery. A sum of money may be described as aclaimor, equally well, as adebtaccording to whether looked at from the creditor’s or debtor’s perspective.  

• Claim

Aclaimrepresents the right for the creditor to demand the remittance of a sum of money owed to him by the debtor. It should also be noted that a claim may berecoverable,doubtful orirrecoverable.Complete definition of the debt 

• Debt

Conversely, thedebtis the sum of money owed by the debtor to his creditor.Complete definition of the debt   

The actors involved in the recovery of debts

When debt recovery proceedings are instituted, two main parties are involved: thecreditorand thedebtor.  The main actors

• Creditor

Thecreditoris the party that holds a lien over another person (the debtor). In sum, this is the actor to whom the money is due. It is therefore the creditor who will make the first moves for recovery vis-à-vis the debtor to recover the sum of money owed by the latter. Note also that the creditor may be eitherpreferred or chirographic.Complete definition of the creditor 

• Debtor

Thedebtoris therefore the party in default of payment who, consequently, has a debt towards the creditor. The necessary recovery proceedings instituted by the creditor to recover the sum of money will therefore be directed against the debtor.Complete definition of the debtor   The intermediariesMany creditors entrust the management of their debtors to a third party, an agent or intermediary.  

• Recovery company

Arecovery companyis an intermediary that assists the creditor, at the latter’s request, in recovering his debt from his debtor. The distinguishing characteristic of the recovery company is that it tries to resolve the problem of payment of its clients (the debtors) by following procedures ofamiable recovery, and thus without referring the case to a court of law.Complete definition of the recovery companyYou can also read our article “How does a recovery company work?”  

• Bailiff (process server)

A bailiff or process server is a ministerial officer or, in other words, an independent public servant. Although specialized in judicial recovery, he may also be involved in amicable debt recovery. However, unlike the recovery company, the bailiff does not defend either of the two parties. In fact, he is bound by a duty of impartiality and must therefore remain neutral.Complete definition of the bailiff (process server) 

• Lawyer

Once legal proceedings are instituted, your lawyer will be your only representative for your actions at law. Generally, if you enlist the aid of your lawyer for debt recovery, it is because all attempts at amicable, out-of-court settlement have failed. Do not hesitate to consult our article: “A lawyer, a bailiff or a recovery company?”    

Debt recovery proceedings

 Once default on payment is detected, recovery proceedings may be set in motion. Distinction is made between two kinds of recovery proceedings:amicableandjudicial. 

• Amicable recovery

The termamicable recoveryapplies to all actions and techniques employed by acreditorto recover hisdebtfrom hisdebtorwithout proceeding to legal measures. It is, therefore, a phase of negotiation between the creditor and his debtor. Several methods may be used for theamicablerecovery of money due to the creditor:

• Letter of reminder of payment;
• Follow-up telephone call;
• Visit to the debtor.

Complete definition of amicable recoveryYou can also read our article: “How do amicable recovery proceedings work?”  

• Judicial recovery

If the various amicable actions prove to be unproductive or ineffective, the creditor may seek redress before a court of law.Judicial recoveryrefers to the procedure that consists of referring the matter to the competent court in order to recover the unpaid sum of money.Complete definition of judicial recoveryObviously, the recovery of debts, like many other sectors, has its own jargon. That’s why we suggest that youconsult ourglossarygrouping the definitions of numerous terms associated with recovery.     Do not hesitate to contact us bye-mailatsales@tcm.beor bytelephoneon +32 16 74 52 04.