PAPER NO.16 DEBT RECOVERY
GENERAL OBJECTIVE
This paper is intended to equip the candidate with the knowledge, skills and attitudes that will enable him/her to undertake debt recovery procedures in accordance with the law.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
- Evaluate the viability of recovering debts through legal proceedings
- Comply with the procedures for recovery of debts through legal proceeding
- Analyze the alternative models of debt recovery
- Apply knowledge of insolvency law in an international
CONTENT
Debt and borrowing
- Meaning of debt
- Types of debt
- Importance of borrowing
- Debt instruments
- Creditors and debtors rights
- Debt collection options
Debt protection
- Meaning of debt protection
- Alternatives to debt protection
- Debt protection insurance
- Distinction between debt protection insurance and credit insurance
Debt management
- Meaning of debt management
- Types of debt management
- Rescheduling debt
- Extension of time
- Foreclosure
- Conversion of debt to equity
- Payment of interest first
- Suspended payments
- Surrender of securities
- Receivership
Preliminary considerations before initiating or defending debt
- Recovery suits
- Letters of demand
- Capacity to sue
- Mediation
- Acknowledgement of debt
- Evidence of indebtness
- Statute barred debts
- Viability of debt recovery
- Availability of the debtor
- Enforcement and execution
Debt recovery through legal suits
Institution of suit
- Locus standi
- Jurisdiction
- Pleadings
- Service of summons
Hearings
- Summary judgment
- Attachment before judgment
- Presentation of evidence
Judgement and decree
- Extraction of decree
- Execution of decree
- Attachment and sale of property
- Attachment of debts
- Garnishee orders
- Committal to civil jail
Alternative dispute resolution mechanisms
- Negotiation
- Conciliation
- Meditation
- Arbitration
Bankruptcy
- Meaning
- Nature of bankruptcy
- Alternatives to bankruptcy
- Bankruptcy proceedings
- Rights of creditors
- Consequences of bankruptcy
- Discharge of a bankrupt
Dissolution of partnership
- Break-up of a partnership
- Effects of break-up
- Restriction of ceasing to be a partner on or after break-up
- Protection of property acquired after break-up
- Winding up by partners
- Distribution of partners assets on winding up
- Dissolution of a partnership which has broken up
- Power of court to appoint administrator
- Order appointing provisional liquidator
- Power of court to fix remuneration of receivers and managers
- Appointment of a receiver as liquidator
- Provisions relating to receiver or manager appointed
Insolvency law
- Meaning of insolvency
- Receivership
- Types of liquidation
- Official receiver/liquidator
- Committee inspection
- Distribution of assets
- United Nations Commission on International Trade Law (UNCITRAL) legislative guide on insolvency law
- United Nations Commission on International Trade Law (UNCITRAL) model law on cross border insolvency
- World Bank principles and guidelines for effective insolvency and creditors rights
Emerging issues and trends