What do you need to know so that the debt is returned on time and in full
🏛 An analysis of judicial practice shows that debt collection disputes from individuals and legal entities are among the most common litigation, so the question is relevant: “What do you need to know so that the debt is returned on time and in full?”
Our “non-legal” advice is to lend the amount of funds that you won’t be sorry to lose 😉
🔹 And now to the legal aspects, if the amount of funds is insignificant for you, then the contract can be concluded in a simple oral form, however, the fact of the transfer of funds must be confirmed by the borrower’s receipt, which indicates the amount of transferred / received funds, the period and procedure for their return, interest for the use of funds (if the parties agree on them).
It should be noted that the receipt in itself is not a loan agreement, but only a confirmation of the agreements between the parties, which may indicate the fact that the borrower (debtor) has received funds in a certain amount from the lender (creditor).
🔹 If we are talking about a significant amount of funds that is lent, you should conclude a loan agreement in writing, such an agreement can be concluded both in simple written form and be notarized. In the specified agreement, you can specify in detail its conditions, obligations of the parties, the procedure and deadline for the return of funds, etc.
Important! You must keep the receipt or contract until the debt is repaid. The originals of the contract are always kept by both parties (the borrower and the lender), but the original receipt of receipt of funds is always kept by the lender (lender) and is subject to return to the borrower (debtor) only after the full return of funds.
🔹 From judicial practice, it is seen that the presence of the original debt receipt from the lender without indicating on it the period for repayment of funds indicates that the debt obligation has not been fulfilled.
✔ Taking this into account, having accepted the fulfillment of obligations (having received funds from the debtor), the creditor must return to the debtor the original receipt of receipt of funds by the borrower, and also, at the request of the debtor, issue him a receipt on receipt of the fulfillment of debt obligations in part or in full.
🔹 If it is impossible to return the debt document to the borrower, the creditor must indicate this in the receipt that he issues to the debtor to confirm the return of funds to him. The presence of a debt document at the debtor confirms the fulfillment by him of his obligations in full.
Unfortunately, we cannot know how our counterparties, friends or even relatives will behave in the future, therefore it will always be advisable to formalize all legal relations, regardless of the amount or degree of trust, in an agreement and confirm any transfer of funds with a borrower’s written receipt.
If you already have a situation with a violation of your rights or legitimate interests by non-fulfillment of debt obligations, do not delay and seek the help of a qualified lawyer in a timely manner.