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What is the significance of the debtor's recognition of the debt for the creditor?

Recognition of the debt by the debtor is of great importance for the creditor, as it is nothing more than the debtor's admission that he has an outstanding liability to his creditor.

Recognition of debt - types

Types of debt recognition:

Appropriate recognition - is a unilaterally binding agreement concluded between the debtor and the creditor, in which the debtor confirms the existence of his obligation. This possibility results from the freedom to conclude and shape contracts in civil law. Examples of proper recognition include: settlement, recognition of an action or renewal.

Improper recognition - in the simplest terms, a situation in which the creditor proves the truthfulness of the debtor's claim on the basis of other documents or circumstances supporting the existence of the debt. For example, you can cite a situation in which the creditor presents the debtor's request to divide the liability into installments. From the procedural point of view, improper recognition is an institution weaker than proper recognition because the court, when examining the case, may not accept such circumstances as the basis for repayment by the debtor. In the event that the debtor does not have full legal capacity, he can also effectively mis-recognize the debt, but must act with sufficient discernment. If the debtor is a legal person, a declaration of one member of the management board is sufficient to recognize the improper debt.

Recognition of the debt by the debtor not explicitly stated

Although the debtor has not expressly stated that he recognizes the debt, some of his actions may have such an effect. Forms of recognition of a debt include: