In accordance with the latest research, almost more than half of the residents of the UAE are in debt. From these amounts of debts, most of the debts are unpaid and unrecoverable. For collecting and recovering these debts, the companies hire debt collection agencies to recover their unpaid amounts. Debt collection in UAE is considered a challenging job.
Debt collection and settling the debt:
For the sustainable development of organizations, debt collection is a mandatory process. In the UAE, many residents are unable to pay their debts due to the affordability issue. They seek the professionals’ help in settling their debt and refrain from going bankrupt. The debt settlement is done through negotiation and collective bargaining from both parties. Where the party under the debt liability seeks the waiver from the other party. This overdue payment is waived through mutual understanding so that the debt repayment may become easy for the liable party. Debt collection in UAE is carried out most favorably in the presence of debt collectors or lawyers. It is suggested to hire a lawyer who specializes in Alternative Dispute Resolution (ADR), this helps in proving the stances with full confidence and clarity. Surely, the creditors will never want to lose their money. So, it is unwanted that the creditors will prefer the process of the collective bargain. But the situation may force the creditors to take the decision of settlement, either due to the need for funds or because of frustration. During negotiations, the debtors should be able to support their stances based on valid reasons and they should be able to convince the creditor to lower the debt amount.
How do negotiate the debt settlement?
- The debtor while settling the debt with the creditor, should make sure that settlement should be done on his debt and no other debt is being included in it. He should clearly know his debt amount and the terms and conditions applied to it.
- The creditor needs to give legal notice to the debtor for claiming his overdue debt amount by the debtor. The debtor has the right to inquire about the overdue amount within 30 days of notice received from the creditors. Once the debtor receives the proof of the debt, he may further proceed towards negotiation and settlement of debts.
- Most of the time the creditor wants to settle the debt either due to financial concerns or personal reasons where he wants to settle the debt amounts at the earliest. In case the debt is really an old debt, the debtor may convince the creditor to him a reasonable relief to pay off the debt amount.
- The debtor should offer a reasonable offer for making a debt repayment for seeking some waiver. He may make a lump sum offer to the creditor or may make a considerable debt repayment method which might be in installments or might be the repayment after some stipulated time period. But the offer should not damage the creditors’ interest and rights.
- In most cases, the creditor brings a counteroffer for the debt settlement. For this, the debtor should stay prepared to either agree or make a good settlement strategy to the creditor.
- It is mandatory to document all the terms and conditions when the settlement is made. Moreover, in the case of repayment of the agreed debt amount it should be documented that the debtor owes no amount to the creditor in the future.
The final negotiations and collective bargaining for Debt collection in UAE are mostly carried out in the presence of lawyers. This helps the parties to make better negotiations which may be fruitful to both the parties to contract. We the Dubaidebtrecovery.com (DDR) are the pioneer in debt recoveries in Dubai, UAE. we have been proudly offering our services in all the emirates of UAE including Abu Dhabi (which serves as the capital), Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. We have successfully resolved more than 50,000 cases of debt collection and assure our customers of the win-win policy for the debt settlements