It is a well-known fact that debts make both debtors and creditors face financial issues if there is any delay from either side. Dealing with these issues is not a cup of tea for a person who is new to business or facing debts for the first time. Therefore, people opt to get legal services to deal with such matters.
In case creditors and debtors do not agree on mutual terms, then there is a probability of dispute which leads to damages to both parties. The global ranking of debt collection in 2018 listed UAE on the top depicting that debt collection in all the emirates of UAE is a difficult process.
Whether it is a large-scale business or a start-up firm, there will always be a debt that is either granted or taken by them. Businesses in the UAE commonly face bad debts and recovering them is also a time-consuming and costly process.
Approaches
for Debt Recovery Dispute Resolution
Debt collection is a settlement between both parties to recover the outstanding amounts. The debt recovery process in UAE is followed by amicable debt recovery failing of which allows both parties to refer the matter to the relevant court. Debt collection procedures in UAE are divided as
- Alternate Dispute Resolution
It is an out-of-court process for collecting unpaid invoices. Our associate lawyers consider the available opportunities including meditation, arbitration, and negotiation before knocking the doors of the court. They persuade the debtors to pay off the outstanding debts by calling them or sending written demand notices.
Our associate debt collection experts arrange a meeting between both parties. The meeting attendants are informed beforehand to bring supporting documents with them. If debtors are facing financial instability those creditors are advised to agree upon easy reimbursement plans which would aid both parties.
However, if the debtor does not respond when contacted using the information provided by the creditor, then lawyers conduct a private investigation. They check whether the debtor is still active and what are the chances of recovering outstanding debts.
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Legal attorneys follow the general code of conduct while dealing with both parties. They help the creditors in completing the process amicably for recovering their outstanding debts. Moreover, the financial condition of the debtors should be considered while collecting debts.
- Court Procedures for Debt Recovery
If the dispute is unsettled in extrajudicial attempts for recovering debt, then creditors can avail the option of going to court to secure their outstanding payments. Our associate lawyers file a lawsuit against the debtor on the creditor’s behalf. The civil or commercial case is initiated in the court which is preceded by litigation in court and jurisdictive boards.
According to Law No. 5 of 1985, debt claims are time-barred after 15 years of the due date. For commercial debt recovery procedures, the time limits differ under Law No. 8 of 1993. To file a civil case against the defaulter, creditors can rely on Article 246 and Article 710 of Federal Law No. 5 of 1985.
The Ministry of Justice appoints Reconciliation and Settlement Committee hears claims and facilitate settlement for debt collection UAE. The matter is forwarded to the court if not resolved by the reconciliation team. The suitable judgment is provided after hearing the concerns of both parties along with proofs.
The judgment can be appealed in the Court of appeal within 30 days if its execution. Whereas, the time limit for appealing on the monetary basis in the Court of Cessation is 60 days. If both parties do not follow the specified time limits for appeals, then the decision of the Court of First Instance will be enforced.
Benefits
of getting Legal Services for Debt Collection
Lawyers in Dubai have a listing of best legal attorneys which operate in a regulated way to retain your business repute while approaching the clients for debt collection. Advocates and lawyers obtain the overdue payments through amicable settlement plans. The recovery efforts are flexibly escalated with every attempt to get your payments back.
Moreover, you can also seek advisory in your debt issues from a legal consultant. Provide them the complete details of your issue and they will assist you with possible options you can avail under the legal umbrella. Here are a couple of benefits you get after hiring our associate lawyers
- Fast Debt Recovery
- Optimized Cash Flow
- Economic Recovery
- Nationwide Services
Lawyers try to recovery your overdue payments through amicable settlements to preserve the commercial repute of both parties. In case of failure, they announce legal proceedings. Getting consultation and support from legal attorneys relieve you from the hassles of managing the legal processes on their own.