Question

differentiate between debt collection process and international debt collection. 20 marks

Answer 1

Debt Collection:

MR. A -----> sale goods to ----> Mr. B ( both are from Same country)

Here, Mr B is called debtor* in the books of Mr. A

* The debtor may be either a person or an entity such as a company

If Mr. B (Debtors) may fail to pay (default) full or part due amount for various reasons

Debt collection process:

Mr. A hire Mr.C to collect debts on their behalf for a pre fee decided. & Mr. C act as middlemen and will also consider the all the terms of sales between Mr.A & Mr.B

Now Mr.C can will go with all legal process to recovery of due step by step till debts to be collected

The above process called Debts collection Process

On the Other Hand: international debt collection

Mr. A & Mr. B are from different country: means international trade

Mr.C has legal license to collect debts in Mr.B Country

Summary Differences

Sr No.	Bases	Debt collection process	International debt collection
1	Sales/Service	Within Same country	With in Another country
2	Legal Laws	only One county	More than 1 County
3	No. of Debtors	Large	For Specific Contract or Few
4	Banks Involvement	only One county	More than 1 County