When debt cannot be recovered, it turns into bad debt. Normally the terms “Debt Collection” and “Debt Recovery”, in collection the creditor tries to recover consumer credit and loans that have not been paid back, whereas recovery is when the creditor hires a third party to recover such debt when it goes unpaid for a substantially longer time period. Many times there is a security that is given by the borrower to the creditor, but when that asset which becomes liable to be used as a means to pay back the debt is unable or incapacitated to do so, recovery becomes important. There are varied legal as well as non-legal methods to recover a debt. The non-legal ways include personal contact with the borrower or sending agents to recover the money, etc; And legal are further explained in module. Debt Recovery Tribunals and Debt Recovery Appellate Tribunals were established under the RDDBFI Act to assist and look after these debt recovery proceedings. Eventually, laws like SARFAESI and IBC were enacted to further refine their workings. ===================================== 𝐅𝐨𝐫 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐟𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 𝐨𝐧 : 👉 Facebook: facebook.com/Lawofficesofkrvivektanwar 👉 Website: advocatetanwar.com 👉 Instagram : instagram.com/lokvt_ 👉 Spotify: open.spotify.com/show/5mutfNRECCTY0jiwl9vEt7 👉 LinkedIn: linkedin.com/company/14653669/admin ===================================== #law #legal #legalnews #debt #debtfree #debtrecovery #debtfreejourney #legalframework #legallaw #lawyer #lawoffice #delhi #lawstudent #legalknowledge #legallittle #legalservices #lokvt #gurugram #studentlife #legaltoday #it #bank #banker #banknifty #indianbanks #banklaw #instagram #exam #bankingexam