Arbitration for Collecting Debts in the UAE

Debt collection agency Dubai involves arbitration for recovering the overdue debts from the non-paying clients. Either party can get the services of an arbitrator whether they are living in Sharjah, Abu Dhabi, Ajman, or other emirates of UAE to resolve debts through arbitration.

 

The arbitration clause is the contract for settling out any payment disputes for recovering delayed invoices for goods and services. Both parties can keep their options open, then they can sign a contract that does not require arbitration rather resolves the issue through informal ways.  

 

Initiating the Arbitration 

 

The process of debt recovery in Dubai through arbitral could be initiated by a debtor. This step is taken if the debtor does not respond after payment reminders. Creditors can instigate the arbitration against the debtor with the help of allowed professionals.

 

Debtors going through bad debts in any area of UAE are also allowed to start this procedure which is commonly known as debt settlement or debt negotiation. This legit attempt is made to get relief in the overdue payments which are to be made to the creditor.

 

The Process of Arbitration

 

The first thing which you should consider is to check the clauses in the contract. If there is any clause related to this way of debt collection Dubai, only then you are eligible to proceed with this. The arbitral process works in the following step-wise procedure:

 

• Send an arbitral notice to the debtor mentioning the outstanding amount. It also serves as an invitation to settle the disputes over the debts through arbitration.  
• Lawyers or advocates hired by both patties prepare the legal documents to be exchanged with the legal arbitrators.
• Creditors and debtors should present their concerns and issues related to the debt recovery to the arbitrator.
• On the basis of evidence and facts provided by both parties, the arbitrator binds them to a decision.

 

Discounts, extended payments, and reduction in debt amount are some of the relieves provided to the debtors upon the legitimate completion of this process. Whereas, relieves gained by creditors include the fee of late payments, real estate property sales, and attachments of movable property.

 

In the end

 

Arbitration laws and policies must be kept into consideration while proceeding with this process. To avoid mistakes, you can get the assistance of legal consultants, advocates, or lawyers providing services of debt collection Dubai as they are experienced in dealing with such issues.