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Explain the ways in which unpaid debt can be recovered from the borrower.

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- By installments – this is mainly used to recover large overdrafts. These debts may be too large to repay in one payment. Where installments have been agreed, the Debt section should review the rate after every six months (the debtor should complete a statement of means). The payments will be monitored every month and reminder letters sent when payment has not been received.
- Transfer payments - If a debtor is on Income Support such as Job Seekers Allowance, Retirement Pension or a medical benefit, debt can be recovered from such payments. This applies mostly in advanced economies.
- Attachment of earnings - Once it has been established that a borrower is earning and the employers details are known an attachment of her earnings can be applied for through the Court
- Garnishee Order - If the account details of the debtor are held and it is known that a payment will be going into the account on a certain date, then a Garnishee order can be applied for through the Courts.
- Warrant of execution - If the debtor had placed collateral or is known to have an item in his possession that will cover the debt (i.e. a car, land, stereo etc), then an application can be made through the Courts to seize the properties ? Receivership - A receivership is a situation in which someone is appointed to take control of a failed business, with the goal of recouping as many losses as possible. In some cases, receivership involves appointing a person or entity to supervise a company which appears to be struggling, with the goal of helping the company get back on its feet. As a general rule, when a company passes into receivership, it is bad news for that company and for the people who have investments entangled in the company or its interests. Creditors of a company insist on the appointment of a receiver, with the goal
being as much preservation of assets as possible so that they will be repaid.

Kavungya answered the question on March 26, 2019 at 09:37

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Explain the ways in which unpaid debt can be recovered from the borrower.

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