5 Simple Legal Steps for Debt Collection: Recommended by Advocates in Dubai

 The barter system, in which people traded goods and services, is when the idea of debts first emerged. It became necessary to assert the debt if one party failed to deliver the promised goods in exchange for the promised goods.

There are numerous cases involving unpaid debt in the UAE, and it may not always be economically feasible for the creditor to sue the debtor. As a result, the best law firms in Dubai will advise you on the best way to collect unpaid debt in the UAE.

When a debt is collected, the borrower is expected to pay back the creditor the money they borrowed from him. Other alternatives could be considered by the creditor in addition to the conventional court route. One of the options available to creditors to recover an unpaid debt is the hiring of a debt collection agency. Other options include making phone calls, sending emails, and serving legal notices to the debtor.

However, the focus of this article is on what a creditor in Dubai can do to resolve the conflict. First and foremost, you, as a creditor, need to find the best advocates in Dubai to help you out.

5 Simple Strategies

1.   Analyze the credibility

Checking the creditor's legitimacy and market reputation comes first and foremost, even before the debt is provided. To make sure that your debt is safe, you must also find out about his prior professional connections in the industry. To find out if he has any active cases in the nation, you can also request a police clearance certificate. Seeking professional help from one of the top law firms in Dubai can help you with this.

2.   Keeping Appropriate Records

The team of Hessah Al Hammadi Advocates & Legal Consultants encountered many cases of unpaid debt where the clients lack the necessary paperwork to support the debt, such as payment receipts, written contracts, or debt acknowledgments. So, you must always keep proper documentation on hand in case of unforeseen circumstances.

3.   Procure a Security Cheque

The level of safety is increased by the ability to use security checks to secure unpaid debt. You have the option to cash the security check to collect the remaining balance if the debt is not paid in full on the due date. Additionally, legal action may be taken in this case if the check is not honored.

4.   Peaceful Resolution

If the matter cannot be resolved outside of court, you need to take legal action. You can contact several advocates in Dubai who can assist in collecting unpaid debts.

5.   Know Your Legal Options

Last but not least, if a mutually agreeable settlement has not been reached, the next step is to comprehend the available legal options, as well as the associated legal fees for each option.

Filing a Civil Case

In general, the procedure for initiating a civil or commercial dispute to claim an outstanding debt would include resolving the matter amicably. That’s what the Federal Law Number 26 of 1999 On the Establishment of Conciliation and Reconciliation Committees at Federal Courts also suggests. It requires the parties to reach out to the conciliation committees to resolve the matter amicably, failing which the parties would be allowed to refer the matter to the relevant court.

Any case that is brought before the court must be fully documented, have Arabic translations and pay the appropriate court fees. Following that, the court will decide the case based on its merits and particular circumstances. After receiving the Court of First Instance's ruling, either party has the option of appealing the decision within 30 days of the judgment date to the Court of Appeal and 60 days of the Court of Appeal's judgment date to the Court of Cassation. Handling such cases of debt collection is always tricky. Therefore, it is strongly advised that you work with one of the top law firms in Dubai.

Conclusion

The most effective way to recover the outstanding debt is to avoid going to court. The strategies mentioned above may keep you from lending to debtors who have no intention of repaying you. Get in touch with the best,  Hessah Al Hammadi Advocates & Legal Consultants in Dubai. 

Hessa Al Hammadi Advocates & Legal Consultants
1702, 1704, Al Saqer Business Tower, Sheikh Zayed Road, Dubai, UAE
71 50 874 7139