UNCLAIMED DEBTOR RECOVERY

What is unclaimed debtor recovery?

Unclaimed debtor recovery refers to the process of locating and recovering funds owed to individuals or businesses that have been overlooked or forgotten. These funds may arise from various sources, such as unpaid invoices, uncashed checks, or outstanding loans. In many cases, debtors may have moved, changed contact information, or passed away, making it challenging for creditors to locate and collect the owed funds. Unclaimed debtor recovery services aim to track down these funds, verify ownership, and facilitate their return to the rightful creditors. This process typically involves thorough research, investigation, and communication with relevant parties to ensure successful recovery while adhering to legal and regulatory requirements.

Reason behind debt becoming unclaimed?

Debt becomes unclaimed when creditors are unable to locate or contact the debtors to collect the owed funds. There are several reasons why debt may become unclaimed:

Change in Contact Information: Debtors may change their address, phone number, or other contact details without informing creditors, making it difficult for them to reach out regarding the outstanding debt.
Lack of Communication: Debtors may ignore or overlook communications from creditors, such as letters, emails, or phone calls, regarding the repayment of debts.
Forgotten Debts: In some cases, debtors may forget about debts they owe, especially if they are small or incurred a long time ago.
Deceased Debtors: If a debtor passes away and their estate is not properly administered, creditors may struggle to locate the heirs or beneficiaries to collect the owed funds.
Bankruptcy or Insolvency: Debtors may file for bankruptcy or become insolvent, making it challenging for creditors to recover the debts owed to them.
Dispute for supply of goods / Service: If there is any dispute between Debtor and creditor regarding the quantity or quality of goods or service it may result into unclaimed debtor.

Overall, various factors can contribute to debts becoming unclaimed, necessitating specialized services to locate and recover these funds for creditors.

What types of debts are eligible for recovery?

There are two types of Debtors eligible for recovery, :

Financial Debtor: Financial Debtors arise when the debt is given in the form of loan. Thus unclaimed debtor arising as a result of lending is called Financial Debtor. Normally such debtors arises to Financial institutions such as Bank, NBFC etc. There is a primary claim of Financial debtors.
Operational Debtor: Operational debtor arises as a result of sale of goods or service. If the payment against sale of goods or service is not made, it treated as Unclaimed Operations Debtor. There is a secondary claim of Operational Debtor.

Overall, a wide range of debts, both personal and commercial, are eligible for recovery, and specialized services can assist creditors in locating and recovering these outstanding funds.

How does Share Samadhan identify and recover unclaimed debts?

Share Samadhan employs advanced data analysis and investigation techniques to identify unclaimed debts. Utilizing specialized tools and expertise, they scour financial records and public databases to locate debtors and assess the circumstances surrounding the debts. With a team of legal experts, Share Samadhan navigates the legal landscape to determine the best course of action for debt recovery. They negotiate with debtors to reach favorable repayment terms and, if necessary, initiate legal proceedings to enforce debt repayment. Through a comprehensive approach, Share Samadhan maximizes the chances of successfully recovering unclaimed debts for its clients.

What is the process involved in unclaimed debtor recovery?

The process of unclaimed debtor recovery typically involves the following steps:

Identification: Researching and identifying unclaimed Debtors, uncashed checks etc.
Verification: Confirming the ownership and validity of the unclaimed debts through checking the Invoicing and demand notice
Notification: Notifying creditors or individuals about the existence of unclaimed debts and initiating the recovery process.
Claim Submission: Submitting claims or applications to relevant authorities like NCLT (National Company Law Tribunal), financial institutions, or debtors to recover the outstanding debts.
Negotiation: Negotiating settlements or payment arrangements with debtors to facilitate the recovery of funds.
Resolution: Undergoing the Resolution process through Insolvency and Bankruptcy code, 2016

How long does it typically take to recover unclaimed debts?

The time it takes to recover unclaimed debts can vary depending on various factors, including the complexity of the case, the willingness of the debtor to cooperate, and the legal procedures involved. In general, the process may take anywhere from several months to even years. Share Samadhan strives to expedite the recovery process by employing efficient strategies and leveraging its expertise in debt recovery. However, it's essential to understand that each case is unique, and the timeline for recovery may differ accordingly.

Are there any legal implications associated with unclaimed debtor recovery?

While unclaimed debtor recovery is primarily a Company Law matter, there may be legal implications associated with certain aspects of the process, such as contractual obligations, debt collection laws, and regulatory compliance. It is essential to ensure that debt recovery efforts are conducted in accordance with applicable laws and regulations of IBC, 2016. Share Samadhan works closely with legal experts to navigate any legal challenges and ensure compliance throughout the debt recovery process.