Debt Collection Agency Emirates

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The legal process established for debt recovery is well controlled. Many money cases are still being settled with the bailiffs mostly involved in the final stages through the Trial, decision and compliance path. The UAE Courts systems were developed to deal with various types of money claims.

1. Debt recovery process in the UAE

1.1. Consideration of the available opportunities to recover your money from debtors prior to going to court is always a good option. Debt collectors may issue legal notices to make telephone calls to reach debtors to convince them to pay back the money owed.

1.2. The creditor must, however, bear in mind that the time he may devote to negotiate an amicable settlement with the debtor depends on various factors, including the debt age and the financial condition of the debtor.

1.3. If debt collectors are unable to locate the debtor with the creditor's contact information, they search forward, undertaking private audits to allow clarification as to whether the debtor is still alive and whether chances of recovery are at best. Additionally, it is vital to be aware of the solvency status of the debtor.

2. The UAE Judicial Framework Overview

2.1. In the event that the extra-judicial efforts to reclaim the debts are insufficient, the borrower will have no other options available but to go to the legal to ensure that his money is repaid.

In this case, as the case may be, the claimant may bring a civil or commercial lawsuit by continuing with the normal route of litigation before the courts and judicial tribunals.

2.2. The legal system of the UAE is that of civil law. The main sources of civil law are the uniform laws enshrined in Article 121 of the Constitution.

Of these, the most relevant laws are the Law on Civil Contracts, Law on Economic Transactions, Law on Bankruptcy, Corporation Law, Law on Labour and Law on Civil Procedure.

The Federal Supreme Court is composed of the Federal Judiciary.

2.3. Abu Dhabi's Emirates, Ajman, Fujairah, Sharjah and Umm AL Quwain have a federal court system that includes a Judicial of First Instance, Court of Appeal, and Regional Supreme Court.

Dubai and Ras Al Khaimah have maintained their own judicial systems and as highest judicial authority they have a Court of Cassation.

2.4. The Federal Court of Appeal considers appeals from Federal Court of First Instance rulings in the federal system.

The Federal Supreme Court shall hear appeals from those Federal Court of Appeal. Dubai, by comparison, has its own First Instance Court, Court of Appeal, and Court of Cassation.

The Dubai Court of Cassation regulates and serves as an appeal court from Dubai Court of Appeal rulings which applies all Federal laws and Dubai Emirate legislation.

3. Time Restriction

3.1. Act No. 5 of 1985 relating to civil contracts includes general restriction laws. A lawsuit is usually time-barred after 15 years, unless otherwise stipulated by a specific provision.

There are however a number of exceptions to the general rule.

3.2. Some laws include terms of restriction, depending on the type of conflict. Furthermore, there are several specific provisions involving time limits under Law No. 18 of 1993 pertaining to commercial practice.

4. Initiating a Claim

4.1. In order to initiate a civil and contractual litigation claim, the lawsuit may first be referred to the Minister of Justice's Arbitration and Resolution Committee (Federal Law No. 26 of 1999 creating arbitration committees in the Federal Courts).

The Commission encourages arbitration, which generally hears those requesting settlement.

4.2. In the event that the litigants fail to reach settlement before the Mediation and Settlement Tribunal, the petition shall have to be lodged at the court involved.

Both documents filed at trial, and the argument itself, must be in Arabic or translated by an accredited interpreter into Arabic. The argument will lay out the groundwork for the conflict and the solutions pursued.

There will also have to be a trial charge due.

4.3. The officials of the court will then submit the defendant's allegation, and the first date of hearing will be scheduled.

If a defendant denies an argument or can not be found, then a verdict can be rendered in the absence of the defendant.

4.4. The court must hold the petition for judgment after the parties have exchanged pleadings and representations, and a hearing date is scheduled for delivery of the judgment.

No further submissions are approved at this time.

4.5. The court will not further hear any side, or authorize either party to file new applications, or join a new claimant, or change the declaration of the lawsuit.

Nevertheless, on some very rare circumstances, the court can re-open the hearing of a case to explain or consider an appeal on the issues in the case at the request of either party or of its own petition.

4.6. The Court of First Instance's decision in regards to its conclusions of both fact and statute can be challenged.

The Court of Appeal again hears the whole matter and further representations and testimony may be submitted by the parties.

The petition must be lodged within 30 days from the date the verdict is issued by the Court of First Instance.

4.7. There is a right of further appeal on a point of law before the Court of Cassation, subject (among other things) to certain monetary restrictions.

The time limit for filing an appeal is 60 days from the day on which the Court of Appeal issues its decision.

5. Execution of judgments

5.1. Unless it has been binding and is approved by the Execution Court as suitable for execution, a verdict can not be performed by the borrower against the debtor's properties.

The execution process is performed within a separate court department.

5.2. There are judges specifically assigned to the Execution Court to oversee the execution and implementation of decisions and orders aided by an Execution Bailiff and administrative staff at the Execution Office.

The Executive Judge is responsible for all matters relating to execution as well as any challenges to that.

5.3. A decision of the Court of First Instance may only be applied if both sides refuse to challenge the judgment within the 30-day time limit.

Where a party lodges an appeal within the time limit, the decision of the Court of First Instance is not called definitive judgement and can not be applied.

5.4. The main ways to impose a municipal judgment are:

• Attachment and selling of debtor's (movables) land.
• Portfolio Attachment, Bonds and Securities.
• Link and real estate purchases.

5.5. Insolvency cases in the UAE begin at the Court of First Instance.

The parties have the right to appeal to the Court of Appeals within 30 days, after the court issues a decision.

The parties are allowed to introduce additional witnesses and evidence in the Court of Appeals to back up their claims.

The Court of Appeals' decision holds unless the parties immediately appeal within 30 days to the Court of Cassation.

5.6. Any Court of Cassation decision is binding, and investors can carefully evaluate debtors ' ability to fulfill their financial obligations before engaging with costly lawsuits.

Notably, all investors are required to submit their cases to the liquidator within 10 days of any written bankruptcy decision.

The liquidator will then rate creditors according to their claims and appropriately allocate awards.

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6. Conclusion

For the debtors, debt recovery is a legitimate business, and many creditors are sincere and just want to do their jobs, and will work to create a plan to help you repay your debt, whether it means full payout, a sequence of monthly payments or even a shortened settlement.