Notices are the legal concept explaining an obligation or requirement that a party be aware of legal process affecting their rights, obligations or duties. There are several types of notice: public notice, actual notice, constructive notice, and implied notice. Recovery of money is a formal intimation between two people warning the other before legal action is initiated to get their due payment. Infact you can also send a notice for recovery of money from a friend, in case he/she owes you a lot. The first step in money recovery cases is sending a notice to the concerned person to pay back the debt without taking the matter to the court.

Debt is nothing but an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. This notice for recovery of debt is very important as it serves two purposes- firstly, it informs the debtor of the defaulted payment and warns him about eventual legal court actions. It is always sent by email, letters, post or fax (in order the receipt to be confirmed in writing by the second party), and thus secondly, the letter can be used as an evidence that the debtor has been contacted and warned of the bad debt situation and the following procedures. This notice demands the subject of debt to settle the outstanding bill, which is in default, within the certain time specified, and informs him about the total debt amount.