Recovery of debts: all you need to know!
What is the recovery 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 term recovery of debts refers to all the various actions that a creditor must initiate in order to obtain payment of his debt from his debtor.
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 debts is a procedure that is set in motion when a creditor has 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 a claim or, equally well, as a debt according to whether looked at from the creditor’s or debtor’s perspective.
- Claim
A claim represents 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 be recoverable, doubtful or irrecoverable.
Complete definition of the debt
- Debt
Conversely, the debt is 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: the creditor and the debtor.
The main actors
- Creditor
The creditor is 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 either preferred or chirographic.
Complete definition of the creditor
- Debtor
The debtor is 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 intermediaries
Many creditors entrust the management of their debtors to a third party, an agent or intermediary.
- Recovery company
A recovery company is 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 of amiable recovery, and thus without referring the case to a court of law.
Complete definition of the recovery company
You 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: amicable and judicial.
- Amicable recovery
The term amicable recovery applies to all actions and techniques employed by a creditor to recover his debt from his debtor without proceeding to legal measures.
It is, therefore, a phase of negotiation between the creditor and his debtor.
Several methods may be used for the amicable recovery of money due to the creditor:
Complete definition of amicable recovery
You 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 recovery refers 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 recovery
Obviously, the recovery of debts, like many other sectors, has its own jargon. That’s why we suggest that you consult our glossary grouping the definitions of numerous terms associated with recovery.
Do not hesitate to contact us by e-mail at sales@tcm.be or by telephone on +32 16 74 52 04.
Recovery of debts: all you need to know!
What is the recovery 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 term recovery of debts refers to all the various actions that a creditor must initiate in order to obtain payment of his debt from his debtor.
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 debts is a procedure that is set in motion when a creditor has 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 a claim or, equally well, as a debt according to whether looked at from the creditor’s or debtor’s perspective.
- Claim
A claim represents 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 be recoverable, doubtful or irrecoverable.
Complete definition of the debt
- Debt
Conversely, the debt is 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: the creditor and the debtor.
The main actors
- Creditor
The creditor is 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 either preferred or chirographic.
Complete definition of the creditor
- Debtor
The debtor is 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 intermediaries
Many creditors entrust the management of their debtors to a third party, an agent or intermediary.
- Recovery company
A recovery company is 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 of amiable recovery, and thus without referring the case to a court of law.
Complete definition of the recovery company
You 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: amicable and judicial.
- Amicable recovery
The term amicable recovery applies to all actions and techniques employed by a creditor to recover his debt from his debtor without proceeding to legal measures.
It is, therefore, a phase of negotiation between the creditor and his debtor.
Several methods may be used for the amicable recovery of money due to the creditor:
Complete definition of amicable recovery
You 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 recovery refers 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 recovery
Obviously, the recovery of debts, like many other sectors, has its own jargon. That’s why we suggest that you consult our glossary grouping the definitions of numerous terms associated with recovery.
Do not hesitate to contact us by e-mail at sales@tcm.be or by telephone on +32 16 74 52 04.
Don’t wait another second – collect your money
Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.
Don’t wait another second – collect your money
Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.