5 Lawful Ways to Go About Debt Recovery from an Individual or an Organization

Filed in Business Guide by on January 27, 2019 0 Comments

Debt collection is one of the thorny issues we get to face in our dealings with fellow humans at some point. It could be a close relative, a business partner, or even a large corporation. Whichever one it is, we need to find a way to recover our money while striving to maintain the relationship. There are proven debt recovery strategies in Nigeria and elsewhere in the world. If you have been thinking of how to collect money from a debtor, here are 5 legal processes to recover debt:

debt recovery

  1. Employ The Services Of A Registered Agent

This comes at number one as it is usually the most diplomatic and peaceful way of recovery debt. A good debt recovery agent will act as a mediator and use a combination of persuasion, dialogue, and more dialogue to try to make a debtor pay up their debts. This is important especially if it involves a business partner whose relationship you still want to maintain. Agents are experienced and are often the best channel to employ in the recovery of a longstanding debt.

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  1. Involve The Courts

Sometimes things get out of hand and even the agents cannot be successful in recovering your money back. Then, you have no option but to go the legal way. There are laws on debt recovery and the courts have the final say in debt recovery in Nigeria. Often, they will give the debtor a time gap to pay up or get into trouble with the law. The downside to this route of debt recovery is that often, you end up spoiling your relationship with the debtor or losing their goodwill. But who cares? The most important thing is to recovery your hard-earned money, isn’t it?

  1. Get A Lawyer

While this might look similar to involving the law courts, the difference is that you actually need to hire a lawyer to present and pursue our case in the courts. The downside to hiring a lawyer to recover is a debt is that lawyers can often be expensive. Thus, you need to weigh carefully the amount involved and the cost of hiring a lawyer in order to assess whether it’s actually worth the stress.

  1. Alternative Dispute Resolution (ADR)

This is another way of settling debt issues, but without the need for the courts or lawyers. Here, you basically visit the alternative dispute resolution where mediation is the preferred method of intercession between the two parties. They come in between and try to find a way to resolve the issue amicably without the need for the law courts. This often works if the debtor is willing to honour their mediation efforts. If they don’t, then…

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  1. Take To Social Media

These days, with the dawn of the social media age, people are becoming more creative when it comes to recovering debts owed them. A single call out on any of the social media platforms could yield the result that years of dialogue and secret mediation has failed to resolve. Twitter and Facebook are particularly great platforms when it comes to creditors calling out their debtors.

All you have to do is to send a text message to a debtor (or inform them via inbox if both of you are still friends on social media), and warn them beforehand that if they do not pay on a fixed date, you are going to tarnish their name (and brand) online. More often than not, this debt recovery tactic works like magic. Once the debtor knows that you are likely to carry out your threaten of soiling their reputation, they sit up and try to sort out the lingering debt issue.

Most organisations and even individuals are very protective of their image and brand. Thus, they will do everything to protect it, including paying up any debt they might have owed in the past.

So, here you are. You have seen 5 lawful but creative ways you can employ to recovery debt from a debtor. We hope you found this article both informative and educating.

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I am Josh Bassey, a blogger, professional CV writer, copy editor and proofreader, as well as your go-to guy for all kinds of writings. Connect with me through the social media handles displayed above.

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I am Josh Bassey, a blogger, professional CV writer, copy editor and proofreader, as well as your go-to guy for all kinds of writings. Connect with me through the social media handles displayed above.

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