Strategies of Collecting Debts in Dubai

Debt is the amount of money which a business or an individual owes from other business or individuals. Businesses lend money on a legal agreement that they would return as per the date stated in the contract and the same is the case with individuals taking loans from a business or any other person.

 

When the debt remained unpaid even after the payment date, it needs to be recovered by following debt collection Dubai procedures. Services r goods purchased on credit whereas the invoices are not clear as per the agreed date should also be collected as debt according to the law. 

 

Below are the strategies for collecting debts from non-paying clients in Dubai:

 

·         Determine the Credit ability

 

Do not forget to check the commercial repute of the person or company whom you are lending products or money. You can get an idea of how responsible they are in paying back the money they lend as a debt from comparing their past business relationships.

 

  • Track Documents 

 

Keep a record of all supporting documents and the agreements signed between you and the debtor to claim debt recovery Dubai. Most often people forget to bring documents to the court and other receipts of payments which deprives them of getting their money. Track all the paperwork regularly as it will be used to claim overdue debts.  

 

  • Get a Security Cheque

 

A security cheque enhances the level of safety of collecting debts once they are overdue. You can en-cash this cheque to see the outstanding payments from the debtor. Moreover, if this cheque is dishonored than you are legally allowed to file a civil lawsuit with a legal representative.

 

  • Amicable Debt Recovery Dubai

 

Amicable settlement is one of the preferred ways or collecting overdue debts, outstanding payments, unpaid bills, delayed invoices, and dishonored cheques. A lawyer sends legal notices to the debtor to resolve the matter outside the court failing to which calls for legal proceedings. 

 

  • Judicial Debt Collection

 

In this process, the creditors file a civil complaint in the court to recover the overdue debts. Legal representatives carry out the procedures and deal with the paperwork on the behalf of clients. It is a relatively lengthy and costly procedure. 

 

According to Federal law No. 26 of 1999, people facing debt recovery issues should reach out to the reconciliation committee. The issue is first resolved through negotiations. If the debtor refuses to pay on time after amicable settlements then the matter is referred to the court.

 

Conclusion

 

Debt collection Dubai is a difficult procedure but lawyers, consultants, and advocates have made it convenient as they know about the laws and practices of UAE. You can hire them to collect overdue debts whether you are in Ajman, Sharjah, Abu Dhabi, or any other emirate of UAE.

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