Debt is a sum of money that is owed or due to be paid pursuant to an express agreement, it is a specified sum of money that one person (debtor) is obligated to pay and the other person (creditor) has the legal right to collect or receive. The most common forms of debt are default in, or unpaid, loan repayments (mortgages, auto loans, personal loans and credit card debts) and unpaid contract sums. 

For the recovery of debt in Nigeria, cognizance must be taken of the limitation period for instituting legal action for debt recovery. Premised on the Limitation Act and Limitation Law of Lagos State, legal action for recovery of debt (action founded on a simple contract) must be instituted within 6 years of the cause of action (Section 8 (1) (a) of the Limitation Law of Lagos State).

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