Debt Recovery In Australia231 views • Nov 03, 2022
A debt is a sum of money owed by a debtor to a creditor which is legally enforceable. Debt recovery is the legal process and procedure which a creditor can initiate to get back the money which is owed by the debtor.
What is and what is not a debt?
Strictly speaking, a debt arises in situations where the legal liability on the debtor to pay or repay money is clear, and the debtor has failed to meet his, her, or its obligation to pay the creditor.
Common situations where a debt may arise include:
- where one person loans money to another on the condition that it is paid back and it is not repaid
- when an account is rendered for goods and services and it is not paid by the due date
- where money is due and owing under a tenancy agreement.