G.O. SODIPO AND CO.

NEWSLETTER

MARCH 2017

Debt simply put means, something owed, and something could be money, goods or services. It could be owed to an individual, firm or the government. When there is debt, and such debt seems unlikely to be paid, the creditor must take steps to ensure the debtor pays back the debt, this process is legally known as debt recovery, and it includes the steps and actions taken by a creditor to regain possession of whatever was borrowed by the debtor.
Owing to the fact that no man is an island, transactions would occur, and as a result of different factors obligations made might not be kept, and this could result in debt, hence debt is sometimes unavoidable.
However it is possible for one to safeguard himself in such a way that provides for effective steps for debt recovery in the instance of debt occurring, it is trite that a transaction is written down or put into contract form, this can be done properly by the help of a lawyer, in a transaction contract, it is important that a debt recovery clause is present, this would set out the terms on how debt should be recovered in the event debt occurs.