Debt recovery is a term used to describe the process of recovering the amount from your debtors that is not received within a stipulated period of time. Debt Recovery services often refers to the process of debt settlement from the debtor when he is not able to pay the entire amount due to his unsound financial position. The creditor agrees to accept the negotiation from the debtor. The process of debt recovery takes place usually when the debt counsellor or any third party intervenes between the two parties and pays off to a creditor at an agreed price. The types of debts that are eligible for debt recovery include credit cards, mediclaim, car loans and home loans. Usually the unsecured loans are eligible for debt recovery.
Debt collection is a process of debt recovery to recover the debts from the debtor. The process of debt collection is undertaken by the creditor who agrees to accept only a part of the amount from the debtor after accepting his negotiations. The process of debt collection may be undertaken by a collection agency also. The third parties of the debt collections usually accept a certain amount of fee from the creditor for rendering services and making proper attempts to collect the debts. They also retain a part of the debts that are to be offered to the creditors.
Here you can read on Solutions in Collecting Debts and Minimizing Cost