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Debt and Collection law in Kampala, Uganda, revolves around rules, regulations, and procedures that help the recovery of money owed to an individual, business, or other entity, usually by a debtor. Uganda’s legal regime relating to debt collection is under the Mortgage Act 2009, Insolvency Act 2011 and the Money Lenders Act 2016. This field also involves insolvency regulations in cases where the debtor is incapable of paying back their financial obligations.
There are several scenarios where one may require legal help in debt and collection situations. You might need a lawyer if you are involved in a severe debt dispute, unable to pay back your loans, intending to file for bankruptcy, or are being harassed by creditors or collection agencies. Also, businesses seeking to recover significant debts from clients might require legal assistance to navigate the process such as drafting demand letters, initiating legal action or negotiating settlements.
The pertinent laws relating to debt and collection in Uganda are the Insolvency Act, which governs bankruptcy and insolvency matters. Under this Act, both individual and corporate debtors who cannot pay their debts can declare themselves insolvent. The Mortgage Act addresses cases related to mortgaged properties. The Money Lenders Act regulates the lending and collecting activities of non-banking entities. These laws set the legal framework for debt collection, providing protection for both the debtor and the creditor.
If you can't pay a debt, under the Insolvency Act, you can declare insolvency if your total debt amount surpasses the stated limit. However, this could lead to consequences such as loss of assets for debt repayment.
No, under the Money Lenders Act, it is illegal for creditors to use harassment or unethical practices to recover debts.
If you are subjected to unfair debt collection practices, you can take legal action against the creditors or collection agencies.
Yes, under the Mortgage Act, your property can be seized as a last resort if you fail to fulfill your payment obligations.
Yes, a lawyer can assist you in negotiating a debt settlement or restructuring your debts on more favorable terms.
To better understand your rights and obligations and navigate the debt collection process, you may benefit from resources provided by the Uganda Law Society (ULS), Bank of Uganda's Consumer Empowerment and Education sections, and online legal databases offering Uganda case law and legislation.
If you need legal assistance in Debt & Collection, start by finding a lawyer with expertise in this field. Consult with them to understand your options and decide on a plan of action. Remember to carry all relevant documents during your appointment to provide a clear view of your situation. Lastly, stay patient and cooperative throughout the process, and keep clear communication with your lawyer.
