Debt Collector in Dubai Emirates
The restructuring of debt at the UAE is of great interest both domestically and overseas. Many businesses have unpaid debts, some of which may not have such an interest as to warrant too much time, cost or money, but are by no means negligible to that company's operations.
In an ideal world, conflicts over unpaid debts would be settled both amicably and quickly between the parties. But when legal negotiations collapse, how do you push a matter forward without undermining your partnership with your partner excessively and/or potentially harming, and what possibilities are there for investors trying to reclaim amounts in the UAE?
1. Options
1.1. Below are some of the tools available in the area to creditors that can be used to enable a debtor to resolve a lawsuit.
2. Asset audit
2.1. It is often prudent to hire an asset recovery service to produce a report on the assets of the claimant before a decision is made as to whether or not to launch legal proceedings.
3. Attachment
3.1. A motion to add the debtor's funds and/or bank accounts may be made with the local court. These wealth reviews can be useful for a borrower to weigh up the potential rewards of taking further legal action.
3.2. It must be determined on a case-by-case basis whether a motion for an extension can be lodged with the local court or not.
3.3. However, if the debtor has assets and the attachment is issued, the attachment will place the debtor under considerable pressure to pay the debt, or to allow the attachment through deposit protection.
4. Bankruptcy Law
4.1. By Decree No. (9) of 2016 on bankruptcy (the' Bankruptcy Law'), a borrower owing a debt of AED 100,000 or more may apply to the Court to begin insolvency proceedings against the debtor company following the appropriate warning process.
5. Criminal action
5.1. Post-dated audits are a fairly common practice for corporations to register in the UAE. When a post-dated check fails, we support clients liaise with local authorities and banks to lodge criminal complaints, which may result in the arrest of the signatories.
6. Identifying the nature of the debt
6.1. We recognize that, in what are difficult economic times, a balance must be reached between the timely and economical recovery of the amounts owed and maintaining good trade relations with business counterparts.
6.2. We are experienced in offering timely, succinct and clear legal advice that understands economic facts from debtors across the Middle East in order to achieve rapid recovery for our clients. Many of the claims from our clients are settled quickly and in full, with limited investment in time and money.
6.3. They agree that matters sometimes need to be viewed from a different perspective to find a solution. A key advantage of instructing us to recover your debt early is that if the matter is not settled quickly, we will already be familiar with the facts and legal merits of your situation and be able to take more steps against the debtor immediately.
6.4. A previous multi-jurisdictional case involving a major dispute has left multiple parties at a complete stalemate including our client. After a period of empty promises the creditor gave to our client, we were able to facilitate and advise on an alternative business solution that saw customers recover more than 80 percent of their claim.
7. Lessons for creditors
7.1. If you have a debt that is unpaid, we would suggest consideration of the following:
7.2. Time is of the essence. When direct negotiations are futile with the trustee it is worth considering contracting the debt recovery as soon as possible.
7.3. This not only frees the staff from relying on day-to-day tasks, but usually achieves the best recovery rate in the fastest time frames for customers who advise us on debts that are less than 3 months old.
7.4. In fact, some forms of lawsuits in the UAE are subject to relatively short restriction periods, so it's important to have your claim tested early in order to ensure your rights are protected.
7.5. Record. All If you are trying to get a debt payment and bargain with the debtor, it is important to ensure that all deals and negotiations are registered and kept secure.
Such proof could prove critical in the event that the case goes through court proceedings later.
