DEBT RECOVERY –ITS MEANING AND SIGNIFICANCE

A debt settlement or debt recovery, usually takes place when a debtor is unable to pay the debt and the attempts of the creditor to take back his money have failed. This process where the creditor cancels a part of the debt and agrees to accept the remaining is also called debt negotiation. There is some difference between debt settlement and debt negotiation. The settlement is an agreement and the negotiation is the process employed for the same. The consumers either approach a debt settlement company or approach their own creditors before this. They also take debt counseling conducted by experts in which they negotiate with the creditors to settle the debt for a lower amount than owed, as the debtor saves their money for a lump-sum settlement payment. In this process the debtor receives a letter from the creditor stating that the debt obligation is fulfilled.

Debt settlement programs are also provided by third party debt resolution firms who coordinate the payment plans, and then collaborate on behalf of the consumers. These programs lower the monthly payment contributions to a minimum and get consumers debt free in a short span of time.

There are various types of debts that are eligible for debt settlement. Usually, only unsecured debts like the credit cards and medical claims can be fixed for payment. Home and car loans which are secured debts cannot be settled for payment because the creditor can recover the items bought with the credit issued to the borrower. If the debtor chooses to enter in a debt settlement program, then some companies accept smaller debt loans. The debtor’s primary motivation for the enrollment in such a program is to pay off the debts according to the debtor’s financial capability. On the other hand the motivation of the creditor is to get back his funds, which would be impossible if the debtor filed for bankruptcy. In this the creditor usually gets more funds as compared to the normal process.

The process of debt recovery is a very demanding task for the debtor because agencies are repeatedly contacting them to accumulate money owed on bills, loans and other balances. In this the collector may choose to pursue the funds through phone, mail, fax, in person or telegram.

Reputable agencies employ numerous resources for tracing debtors. They have an access to many public databases which help to trace the debtor’s recent activities. They hire professionals who investigate into the affairs of the debtor.

There are basically five main objections for debt settlement. They are as follows:

Damages credit

The method of negotiating and reaching debt settlements with creditors requires the debtor to set aside money into a settlement fund from which settlements are paid. Due to the debtor’s financial hardship, the debtor is unable to make minimum payments towards credit card debts while saving up and setting aside money to payoff settlements.

Increased collection calls

The failure to continue the planned debt repayment results in increased debt collection activities that cause the debtor undue stress.

Possibility of lawsuits

The fright of lawsuits is also an objection to debt settlement.

Tax consequences

Another common objection to debt settlement is that debtors whose debts are partially canceled outside the bankruptcy system will need to report the canceled portion of the debt as taxable income.

Debt settlement trade associations are also being set up to promote the state governments as many state legislatures are passing laws that restrict out-of-state companies from providing debt negotiation services to in-state residents. Two examples of these associations working at the global level are the United States Organization for Bankruptcy Alternatives (USOBA) and The Association of Settlement Companies (TASC).

LEGAL RESEARCH AND ITS STRATEGY OF OPERATION

Legal research is the process of classifying and recovering information necessary to support the legal decision-making. It basically includes a course of action that begins with the analysis of facts of a question and ends with the submission and transmission of the outcome of the analysis. It involves the search in the primary sources of law and jurisdiction. It is conducted by layers, paralegals, librarians from various databases like the Lexis nexus, Westlaw etc. there are also online libraries available for this purpose which help law students and the others to keep themselves updated with the latest law and the information available on selected topics. This work is mainly outsourced by the various lawyers and law firms abroad. The law companies abroad get their work done through the lawyers in the developing countries at affordable prices. They get quality services through this at reasonable rates.

There are various steps that are involved in performing the legal research of any topic of project. Each researcher has a different strategy for completing the work. This varies depending on the purpose and nature of the project, the knowledge of the project and the time and money involved in the same. Before starting any research, the researcher should be familiar with the content, strengths, weaknesses of the project and should know the procedures to implement and use the same.

The researcher should first decide on the parameters involved in the research which basically include the deadline of the project, the restrictions on the amount of time and money, the purpose of the research, the focus of the research, the level of the court appearing in and the nature of the legal research. After the parameters are decided, the initial analysis of the project takes place in which the people available in the project, the role and relationships of the parties involved in the legal research are seen. The claims, injuries, defense etc. are also involved. The problem should be viewed with an open mind so that all the important issues are taken into account. As the analysis is continued, a list of the key words should be maintained so that the search is expedited further.

The next step is the organization of the research material. All the material should be kept in a single folder for a simple legal research. But on the other hand for a complex one, a separate issue should be kept for every separate issue. The appropriate sources should be kept in the required folders. Research notes should also be maintained along with the process so that the notes are used up later for review.

A complete research bibliography should also be maintained for a thorough review of the facts later. The title, author and year of the legal research should be updated at very point. Case citations, list of statutes, amendments, legal provisions, and other information should be maintained.

A checklist will help you to keep a track of the sources to consult in case of any query at the time of research.

If we employ these basic steps for initializing the legal research then there least probability that there would be any type of error or lack of information in the legal research.

Key words

Legal research, statutes, lexis nexus, Westlaw, bibliography

Spirituality- A wave or a milestone

Cut throat competition, sprawling MNC’s, buzzing private sector and Double income no children families. These are some of the many developments that are taking place in our present lives. Man is busy making money. Everything now happens at the click of a button on our computers. Everyone is caught up in their busy schedules and the endless entries on the daily chore list. Work seems to be an unending affair. Along with this, tension, stress, high blood pressure, heart attacks come as a free package. Amidst all this chaos the poor mind gets so messed up that it loses its identity altogether. It is entrapped in insecurity, turns to smoking and drinking, tries to waive the tensions by sticking to drugs, changes paths and people and finally when it does not get what it desires for; it prefers to walk into another world leaving behind its body. Suicides, drug addictions, terrorism, child abuse etc. are some of the visible results of a soul which has lost its path and is roaming in search of peace and happiness.

What is the solution to this problem? What is the meaning of life? What is the right path to happiness? These are just some out of the endless questions that keep cropping up in the mind of man today. One answer which is satisfying many today is spiritualism. Spiritualism cannot be defined in proper words. Some call it the path to reach the inner self, some call it the divine energy force, but the youth of today define it as a way to release their stress, and a mechanism through which they can explore their potential and tap it in a proper way. Therefore, we cannot say that it is not possible to roll away the clouds of violence, terrorism and despair that are prevailing in the world today.

Reiki, Art of living, Sidhha healing etc. are some of the channels spreading awareness amongst the public about facts like the divine energy, life after death, re-incarnation or rebirth and the art of meditation. They run full fledged courses for the people and aim to free them of their worries, tensions, and karmas. Baba Ramdev, Sri Sri Ravishankar, Rishi Prabhakar are some of the spiritual teachers who have now become household names. Sitting in front of the TV set one can learn the techniques and tactics of bringing one’s life on track. Meditation, yoga, spiritual healing are some of the techniques taught by these Gurus to balance and clean the cluttered minds of today. People are gradually moving away from the issues of caste and creed. They are beginning to respect the religion and beliefs of the others. Various multinationals like Charak, Godrej etc. have started organizing workshops of spiritual learning for their employees to improve their work performance. People are getting aware of the concept of karma. They are now realizing the fact that whatever karma they will perform here will come back to them in this life only. Past life regression therapies, joint sessions of Sidhha healing, Satsangs etc. are catching pace in the current times. The Symbiosis Institute of Management, Pune has introduced a separate subject of spiritual management in its curriculum. The Jails in India have started reforming the prisoners by giving them spiritual education. The newspapers and media are also playing a key role in giving knowledge about spiritualism to the general public. Speaking tree, which is a daily segment in the Times Of India awakens the people by publishing several articles on spiritual learning and teachings.

Till now idol worship, keeping fasts etc. were considered as an answer to the unending sufferings of man. But in the present day spiritualism has overpowered the minds of the young as well as the old generation. Spiritualism is now being termed as a science which is soon going to be recognized as metaphysics. Religion which looked vague is now being supplemented with spiritualism which is based on reason and logic. They say that if religion divides, spiritualism unites.

Spiritual education should be introduced at the school level so that the coming generations of children consist of dynamic and balanced minds who will contribute in a large way to the development of the world as a whole. If more and more people open their minds to accept this as their way of life then we can surely raise the vibration levels of our earth making it a place free of all the evils and disasters.

-By Raina Sabharwal, Legal Research Counsel at mindsprings Solutions India Pvt. Ltd.

OUTSOURCING AND ITS IMPORTANCE FOR DEVELOPING COUNTRIES

Outsourcing essentially involves the transfer of the administration of the complete business to an outer service provider. An agreement is entered into between the client and the supplier. Under the agreement the supplier obtains the means of production in the form of assets and workforce from the client. The segments that are usually outsourced are human resource, real estate, accounting, legal work, telemarketing etc.

Legal Process Outsourcing (LPO) sector includes in-house legal organizations which outsource legal work from the regions which are costly for e.g. the US or Europe to the areas where the work can be performed in affordable prices. Legal process outsourcing is growing day by day and is expanding to the developing countries like India. The work involves legal research, drafting, billing and preparation of invoices, intellectual property research, paralegal services, secretarial support services etc. This work is conducted by experienced legal professionals who use databases like the Westlaw, Lexis nexus etc.

India and many other developing countries have reached the forefront in the international scenario of legal process outsourcing. According to the estimates less than 12,000 jobs are available in the LPO industry in India right now, which is expected to grow to a number equal to 29,000 by 2008, 35,000 by 2010, and 79,000 by 2015. The work outsourced by US is worth $60 to $80 million at present which will soon increase to $3 to $4 billion. In spite of all this, there continues to be a resistance to the offshore outsourcing of legal services due to the waiver of privilege, disclosure of sensitive information, unauthorized practice of law, quality control and potential conflicts. But these arguments can be overcome by a methodical and careful approach.

The chief criticism of legal outsourcing is complexity of the work in being specialized and concentrated on the particular jurisdiction in which the client seeks relief. There are basically two kinds of complaints that exist with this work. The law firms are taking advantage of this route to promote themselves. It is alleged that the caliber of the people employed at the offshore locations does not match the requisite experience that is needed to complete a client’s request. Only the regular work like non-forensic accounting, the drafting of legal documents is successful as compared to the more complicated work which involves long term experience and supervision. The other type of complaint comes from ethical issues linked with the confidential nature of the client’s work. The people who are hired in these firms work for gaining money and they can be easily trapped by other companies to extract information. The legal work is more vulnerable than other kinds of outsourced work since it consists of easily identifiable clientele for the purchase of the information.

These days the biggest motive of all the legal outsourcing firms is to make the maximum profit. They outsource work to India so that they can achieve their targets at low prices. This process consists of a two way process of exchange, faith and assistance. In the present day world there is a need for a formal regulation on the legal process outsourcing industry containing education and authorization for offshore attorneys so that some confidence in inspired in the clients to ensure the highest standards of services.

Divorce Untying the Knot

In Punjab, India, where practically every household likes to boast of at least one relative or the other living abroad, an NRI (Non-resident Indian) son-in-law is still considered a good catch. Down south, in Andhra Pradesh and Kerala, numerous brides wait to immigrate to foreign lands where their NRI husbands reside. Unfortunately, a good number of these marriages end in divorce even before they begin. The bride arrives on the foreign soil where her NRI husband resides only to find that he is married or has a relationship going with another woman. Or she may not even make it to her husband’s home abroad… Her dowry being the only reason the man married her in the first place. Once that has been delivered, he has no use for her anymore.

The presence of several Asian women help groups in most parts of the world where a large number of the Indian diaspora reside (Manushi in New Jersey and ASHA in Washington D.C. in the U.S. for example), is testimony to the fact that all is not well with Indian women abroad. These groups offer all manner of help – legal, financial, shelters, etc. where an Asian woman experiencing trouble can interact freely with faces and accents that are more familiar than those of the citizens of her new country. Many a woman prefers to take the help of such groups to set up home for herself abroad, rather than return to India where she is likely to face social stigma and/or not be welcomed by her own relatives who think of her divorced status as a burden too heavy to carry. But there are others who still prefer to return to a supportive family network in India to recover from the trauma of a broken marriage before they initiate legal proceedings to get their financial and custodial rights.

By and large, divorce issues involving custody, finances, property, etc. are more quickly and ‘cleanly’ dealt with in countries like the U.S. for example. However, legal fees abroad can be quite high and a woman whose finances are controlled by the husband may not have access to such money. The best thing for a couple who has mutually decided on divorce is to work the settlement out together and only approach a lawyer for essential paperwork. But divorce is usually so traumatic that both husband and wife may not pay attention to the finer details initially just because they are in a hurry to get out of a bad situation and move ahead with their lives. Making legal decisions that may impact one’s long-term future while going through an emotional and stressful situation such as divorce is not advisable at all.

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Legal Outsourcing- A Future Trend

The present economy era, characterized by widespread technological growth and advancement in communication systems, has considerably shrunk the distance between the two ends of the globe. In a scenario where the geographical barriers have been surmounted by technical progress, the concept of outsourcing has witnessed a boom and has become a trend in the business industry. With a view to adapt to the market pressures in a highly competitive economical set-up, the business entities are increasingly focusing at availing the modernized and developed business strategies among which outsourcing has proved to be one of the most efficient support systems.
With the legal industry gaining momentum and striving to stay ahead in the highly competitive and global marketplace, legal process outsourcing has been recognized as a compelling business strategy to achieve the business objectives. The increasing drift towards outsourcing of legal work has been triggered by the endeavour of the legal entities to concentrate on their key areas and delegate the back office work to skilled and expert workforce thus preventing the diversion of their human resources to non-core areas.

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