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Debt Collection in Dubai

Debt Collection in Dubai

Updated on Thursday 04th June 2020

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There are situations in which companies must verify the payments made by their clients or partners and, in some cases, debt collection is necessary for Dubai companies. Our lawyers in Dubai are specialized in debt collection and they are ready to offer you full debt collection services for companies and individuals. We mention that our advisors will use the appropriate debt recovery methods in order for you to negotiate with the debtor and get back your money. We can also support you with the collection of remaining payments and to help you with the follow-up procedures.
 

The meaning of debt in short details

 
A borrowed sum of money which is not returned in time as stipulated by an agreement in this sense, signed by a company (the creditor) and the debtor, is called debt. This is the case where our Dubai attorneys can offer complete assistance and support when initiating the debt collection process.
 

How is debt collection procedure made in Dubai?

 
When entering into debt collection proceedings in Dubai, the debtor needs to know that they can communicate effectively in order to resolve any existing problem and be able to negotiate the payment methods. The following steps are part of the recovery procedure in Dubai:
 
  • debt collection begins with the amicable approach in which the debtor receives a notice for payment;
  • the next step consists of a phone call from our debt collection agents;
  • an open communication will be maintained between the creditor and the debtor throughout the procedure for a proper recovery; 
  • our team of advisors will act in compliance with the law so that companies receive their money back;
  • we will try to solve any recovery through amicable procedures, in order to avoid lawsuits.
 
We will need complete information about the debtor, in order to make a complete and correct evaluation of the situation in which the debt arose. We will try to persuade the debtor to make the payment, however, if they fail to respond, usually within the 60 days-time limit, we will commence the legal actions for debt recovery.
 

Is debt collection procedure in Dubai complex?

 
In most cases, debt collection can be an easy procedure if an agreement in this sense is accepted by both parts: the creditor and the debtor. If the terms are not respected, then a court will settle the following steps in recovering the money or assets.
 

What forms of debts can be met in Dubai?

 
Loans, rental payments, or cheques can be subject to debt collection in Dubai. We remind that any financial obligation made to a company in Dubai needs to be respected in accordance. Our Dubai lawyer is at your disposal if your company needs to recover credits or any related financial obligations.
 

Judicial proceedings in debt collection in Dubai

 
If an amicable agreement cannot be reached you can also file a petition with a Dubai court in order to recover any outstanding debt. It must be taken into account that Dubai does not have courts specialized in commercial litigation, therefore, you will have to file your petition with the relevant local court. The first step of the procedure consists in the Dubai court notifying the debtor through a registered demand letter which requires them to pay the amount and the late payment fees within 15 days. If the debtor does not pay, a trial can be commenced, stage in which the proceeding will be conducted in writing, as oral hearings are not possible in civil cases tried in Dubai. The remedies issued by the court usually consist in compensatory damages.

 

Paying debt before a legal execution

 
It is definitely unpleasant to deal with the debt collection procedures in case of unpaid bills or contracts. Our debt collection agents in Dubai are here to offer the possibility of paying the debts in a rapid and advantageous manner, in order to skip the formalities related to an execution in the court of law. Each case is unique and companies or natural persons involved in a debt collection procedure should seek immediate legal assistance and support. 
 

Sale of debts – what you need to know

 
Particular cases of debt collection might involve the sale of a specific share of the debt to another company called debt buyer or factor. Such company can buy debts and account for a certain percentage of the debt value and then pursuing the debtor for full balance, in agreement with the initial agreement or contract. It is a known fact that in the case of debts sale, the creditor receives direct revenues, although they are reduced compared to the value of the debt. In this situation, the debt buyer or the factor takes or receives the risks of the debt collection. Let our lawyers in Dubai tell you more about the debt collection procedures and about the ways in which companies can recover the payments.
 

Collection practices in Dubai

 
Debt collection agencies are at the disposal of foreign and local companies that are interested in recovering specific payments. The legislation specifies that agencies can locate debtors by getting in touch with other individuals or companies if it is the case, keeping information about debts in complete confidentiality. In case of deceased persons, the debt collection might involve the sale of properties or assets, without having to consider that the relatives are the next in line to make such payments. There are also situations of debts abroad which need to be recovered in Dubai. It is important to know that our debt collection specialists in Dubai will contact foreign parties and agencies and agree on the financial recovery methods with no complex formalities.
 

FAQ about debt collection

 
1. When is debt collection needed in Dubai?
 
Full debt collection services are provided at the time companies want to recover specific payments from partners, clients or other collaborators. Such procedures are normally conducted by a debt collection agency or specialists in this field. Our attorneys in Dubai are at your service if you are interested in the legal recovery methods involving the debt collection.
 
2. What is the starting point for debt collection?
 
A debt collection procedure starts with a payment notice, an amicable method followed by a phone call made by our specialists. The procedure is based on an open communication and a complete connection between the debtor and the creditor in Dubai. If companies from abroad are involved, the foreign legislation needs to be observed in such cases.
 
3.  Is debt recovery method a legal procedure in Dubai?
 
Yes, all the recovery methods are made in accordance with the applicable legislation in the UAE. There are many companies or natural persons interested in the legal advice of a team of lawyers in Dubai who can provide information, instructions and guidelines when a debt collection procedure takes place. Let us remind you that our specialists in debt collection in Dubai are at your service at any time, whether you are a representative of a foreign company or not.
 
4.  Is a debt evaluation made in the first place?
 
Yes, a debt collection agency in Dubai will, first of all, talk to the creditors and then will make a plan and a strategy to recover the debts. The amicable procedures are in most cases recommended.
 
5. Can I avoid a lawsuit in a debt recovery case?
 
Yes, instead of dealing with the proceedings of a debt collection case in the court of law, a debt collection agency will provide information about the amicable procedure in your case. Debt collection procedures are not that complex, especially if both parties involved decide on new terms and payment conditions, with complete legal support offered by our team of attorneys in Dubai.
 
As it is known, lawsuits take time and money, among other things, therefore, with the complete support from our team of advisors, your company can rapidly recover the payments from clients or partners, under new conditions if are needed. Moreover, there is a limit of 60 days until the case goes in the court of law, in front of the authorities. All the financial obligations of a firm can be effortlessly recuperated if companies decide on the support provided by specialists in this domain, the debt recovery agencies in Dubai.
 

Debt collection services available in Dubai

 
Our Dubai law firm can help you recover any existing debts and will also support you to verify any ongoing payments from customers or partners and repossess any recovered assets. 
 
Please feel free to contact our law firm in Dubai, if you are in need of debt collection services in Dubai.