If you are one of those many who is burdened by bad debt, then lots of your precious time and energy must be going in deciding how to recover my debt!
Recovery of bad debt can be a nightmare for any creditor, whether financial or operational. Chasing or running after debtors, is a well-known fact, that generally does not bring positive results.
Effective Solution To Recover Your Debt!
As economies expand, the businesses have become more and more dependent on a balance between credit & loan, the problem arises when this equation is impacted. The problem of bad debt keeps growing with time but then, the solutions also are at hand, if you look for them!
There are many loan recovery agencies & law firms in India that take up cases of bad loan and bring it to a logical and conclusive solution!
With the ever-increasing problem of bad debt, many, many, recovery agents and agencies have sprung up all over India. Almost all of them claim to be the best in the field but you should be aware and select prudently because if the agency is not genuine you may land in a bigger problem.
"The best idea would be to contact a legal consultancy firm with an impeccable professional reputation to initiate an action against the defaulter."
Go The Legal Way!
A legal firm is adept in conclusively solving such problems, as laws pertaining to debt collection is complicated, and can lead to legal problems, if not duly followed.
Legal firms hire professionals trained in this field and they would consult, guide and execute the entire process within the shortest time period. It will provide you the ease of dealing with it and save you from falling into further complications.
Any genuine law firm or agency will never take up a legal recourse in the first step. A creditors main concern is to recover the bad debt at the earliest, therefore, the initial step is to mediate so that the debtor understands the consequences of not repaying.
In case, mediation does not work, then a Letter Before Action is presented to the defaulter. This is a professionally drafted letter which covers all crucial details of the outstanding amount, date, etc. and is considered as a warning letter. If no positive outcome is witnessed within the stipulated time, then legal action can be initiated against the debtor for the recovery of bad debt.
If it is a case of corporate creditor, where the value of debt exceeds rupees one lakh, then there is a legal tool in the form of Insolvency and Bankruptcy Code (IBC), 2016. The legal firm can initiate insolvency proceedings with the consent of the creditor.
If you are a financial creditor, then under Section 7 of IBC and if an operational creditor, then under Section 9 of IBC, the process of Insolvency shall be initiated by the firm by drafting the petition. The filing of the petition with the NCLT and henceforth, appearances by the advocates and pleading the case in full earnestness, shall be done by the firm. They will also follow-up the case and give briefings, till it reaches its conclusion.
Another option can be a legal recourse in the form of a summary suit, which will enforce a faster and more efficient outcome.
Contact, Consult And Connect At The Earliest!
There are numerous ways and means for recovery of bad debt for Suppliers of Goods & Services, financial services, etc. You need to contact the right firm or agency to know the remedy to your problem.
The Author is associated with MUDS Management Private Limited.
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