In financial dealings, debt represents a sum of money due by certain and expresses agreement. It is a specified sum of money owed to one person from another, including not only obligation of debtor to pay but right of creditor to recover and enforce payment. In financial terms, any amount of money which is still owed after some payment has been made is called a balance, but the balance remains a debt for the debtor to offset if the debtor fails to pay the remaining sum.

When Is a Right To Recover Debt Deemed To Have Accrued?
By virtue of the provision of the law, a creditor's right to a recover a debt can be said to have accrued on the date the debtor acknowledges the debt due to be paid to the creditor and not before the date of the acknowledgement.

Statute of Limitation
An action to recover a sum in a contract shall not be brought after the expiration of six years from the date the cause of action accrued. By implication, right to recover a debt in simple contract is extinguished at the expiration of six years from the date the cause of action accrued, that is, the date on which the plaintiff could sue to recover the debt if he so desired. At the expiration of six years from that date, the right to recover the debt is extinguished, notwithstanding the fact that the debt remained unpaid.

Exemptions.
The limitation statute does not apply where there is a right to recover sum in the following instances:
*Penalty or forfeiture of sum due to be paid.
*A sum due to be paid by a registered company by a member.
*An amount recoverable against wrong doers under a civil liability.

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