Debts in UAE
Popularly known as “the land of opportunities,” the UAE is home for millions of expats from all over the world. To take advantage of the available opportunities, people often rely on debt in the UAE.
While creditors and debtors aim to have a win-win relationship, there are several cases when the creditors require debt recovery services.
Be it debt recovery or negotiating debt with an individual or a company, it is important to engage a local firm which understands the UAE legal framework. In the majority of the cases, debt recovery in the UAE is an amicable process.
In cases where an amicable outcome is not reached, legal proceedings have to be initiated.
In most of the cases, initially a payment notice is sent to the debtors. If the debt remains unsettled, the debt collection lawyers will then contact the debtor and convey the terms of the recovery following appropriate discussions with the creditor. This follows the correct legal framework in order to accelerate the recovery of the debt. The measures are taken to ensure that the recovery process does not lead to any kind of lawsuits, and that debt is recovered as soon as possible.
What if the debtor fails to clear the debt?
In cases where an amicable outcome is not reached, legal proceedings have to be initiated. In most cases, a legal petition is filed in the UAE Courts to recover the outstanding debt. Once the petition is filed, the court will then send a demand letter to the debtor to clear the outstanding debt, along with the late payment fees, within 15 days.
If the debtor is unable to repay the debt within 15 days from receiving the demand letter from the court, a trial is initiated against the debtor. The court will then help the creditor with the debt recovery. Trials regarding debt recovery also allow the creditor to claim additional compensation.
It is important that the attorneys involved in the process are engaged with their clients at every step to ensure they can recover the debt in the most hassle-free and time-efficient manner.
The debt buying agencies buy outstanding debt from the creditors in the UAE. Debts that are yet to be recovered fully can be sold by creditors to such agencies for a certain percentage of the total outstanding balance.
It is then the responsibility of the debt buying agency to recover the debt from the debtor.
We can help credit providers decide whether or not selling debt is the right choice for them.
Our vast experience in the industry has made us well aware of the entire debt collection procedure in the UAE. Our expertise can help creditors make decisions that ensure cost-efficiency and legal compliance.
Many comp[anies in UAE is debt recovery business for a very many years. Be it fast-tracking debt recovery, filing a lawsuit, or verifying the ongoing payments, our legal experts can provide all the help as per your needs.