The legal procedures designed to recover the debts are well regulated in Dubai. Debt recovery is a process to pursue outstanding payment from the debtor. Dubai has developed several procedures to facilitate debt recovery in an efficient and timely manner.
Debt recovery challenges
There are challenges involved in collecting outstanding debts. A few of them are listed below.
Initial stage:
A creditor can issue a pre-action letter. This letter is important as it sets out the outstanding obligations of the debtor. This pre-action letter sets out a strict deadline for payment of debt and sometimes an invitation to meet and discuss and reach into a settlement
Amicable settlements
Negotiations
Negotiations with the debtor are the best attempt to reach into an amicable settlement before resorting to any litigations. Both parties should work diligently to assess and reach a mutually acceptable resolution. The debtors could also end up paying late fees or interest on outstanding debts after the settlement.
The parties may opt for arbitration to solve the disputes related to debt recovery. The arbitrator hears the evidence brought by both sides and makes a decision which is binding on both the parties.
Reliefs provided in the settlement
Judicial proceedings in debt collection in Dubai:
Debt recovery by court procedure is another option to claim outstanding dues. A creditor can file a civil case which may proceed with normal litigation before the court.
Reliefs provided by the court for creditors:
Risks involved in debt recovery:
When considering the debt recovery process, one must also consider the following facts:
Preventive measures
Following measures should be considered before providing a debt recovery facility:
HHS Lawyers have a professional and experienced team to handle debt recovery cases. Our intention to gives you result-oriented services for debt collection. If you are looking for debt recovery services contact us for further consultation.