What is Assignment of Money Due?
Debt assignment means the transfer of debt and related rights and obligations from a creditor to a third party. This is a legal binding and the third party becomes the owner of the debt. Debt assignment is also known as Assignment of Money Due. The debt assignment can also be assigned to debt collectors who are assigned the task of collecting the debt.
Companies may assign the debt to improve liquidity or to reduce risks. The debtor is kept informed on the third-party debt collector to make the necessary payments.
The Assignment of Money Due Would Involve:
Name of the debtor and the debt assignee
Notification to the debtor on the details of debt assigned and where the future payments need to be done
The amount owed.
Signature on the notification in presence of a witness
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