What is debt recovery?
Debt recovery is the process of collecting unpaid debts from individuals or businesses. It involves legal actions and negotiations to ensure that creditors receive the amounts owed to them by the debtors.
What is the first step in recovering a debt?
The first step is to send a formal legal demand notice to the debtor, requesting payment of the outstanding amount and outlining the consequences of non-payment. This legal notice should be sent before considering legal action.
What is to be done in case the debtor is not ready to settle the amount inspite of issuing a legal notice?
There are various court proceedings like filing a law suit, seeking court orders to freeze bank accounts or seize assets, and enforcing legal judgments that compel repayment. The specific actions depend on the facts and circumstance of each case.
How long does it take to recover a debt in the UAE?
The timeline for debt recovery varies depending on the complexity of the case and the debtor’s response. An amicable settlement can take a few weeks, while court proceedings may take several months or even years.
What is the debt recovery process in the UAE?
The debt recovery process in the UAE typically involves sending a legal demand notice, attempting an amicable settlement, initiating legal proceedings, obtaining a judgment, and enforcing the judgment.
What documents are required for initiating a debt recovery case?
The key documents typically required for initiating a debt recovery case include a signed contract or agreement as proof of the debt, copies of unpaid invoices, and any correspondence with the debtor regarding attempts of recovering the debt or any communication evidencing the admission of the debt by the debtor.
What are the costs associated with debt recovery in the UAE?
The costs associated with debt recovery in the UAE typically include legal fees for providing the professional services, court fees, and potential enforcement costs. The above said costs are exclusive of VAT and other out of pocket expenses.
Is there any limitation period for initiating a debt recovery claim?
The general time limit is 15 years from the date the debt became due. This period can vary depending on the nature of the debt and the specific terms of the agreement between the parties.
Can I recover an interest on the outstanding debt?
Yes, under UAE law, interest can be recovered on outstanding debts. The applicable interest rate will depend on the terms of the agreement.
Can I recover a debt if there is no written agreement between the debtor and creditor?
While a written agreement is ideal, it is still possible to recover a debt without one. Verbal agreements and other evidence, such as email correspondence or payment proofs and records, can support your claim. However, having a written agreement significantly strengthens your case.
What is a payment order, and how can it be used for debt recovery in the UAE?
A payment order is a simplified procedure for recovering undisputed debts. It’s a quicker and less formal process than a full court case. If the debtor doesn’t dispute the debt within a specified period, the court can issue a payment order requiring the debtor to pay.
Can I obtain a summary judgment for a debt claim in the UAE?
Yes, you can obtain a summary judgment if you can prove that the debt is undisputed and there’s no genuine issue of fact to be tried.
What are the specific challenges in recovering commercial debts in the UAE?
Commercial debt recovery can involve complex legal and financial issues, such as insolvency proceedings, contractual disputes, and international trade regulations.
What if the debtor is located outside the UAE?
Debt recovery from a debtor located outside the UAE may involve international legal procedures and coordination with foreign legal systems. Our law firm is well-equipped to handle cross-border debt recovery, leveraging our extensive network and expertise in international legal practices to effectively assist in recovering debts from global debtors.
Can debt recovery be done through an arbitration instead of the usual court proceedings?
Yes, if the agreement between the parties includes an arbitration clause, or if both parties agree to arbitration, debt recovery can be pursued through arbitration rather than through a court.
Can assets be seized from a debtor who fails to pay?
Yes, if a debtor fails to pay, the court can order the seizure of their assets, such as bank accounts, property etc to satisfy the debt. Our law firm can assist
