Debt Recovery Services Dubai

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Debts may be dated back in history. Back then, people sold services and goods in return for other services and goods. But what if current services or commodities were not to be traded with, and if one side failed to deliver the goods or services as promised?

Throughout ancient civilizations, there were different approaches to dealing with the debtor; from debt slavery in the Sumer, Persian, and Roman empires to the ability to call the debtor to trial according to relevant laws, which were then in effect in many countries in the late Middle Ages.

The legal process established for debt recovery is now well controlled. Many money cases are still being resolved 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

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1.1. It is always a good option to consider the available opportunities to recover your money from debtors before going to the court. Debt collectors may issue legal notices and 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. When debt collectors are unable to locate the debtor with the creditor's contact information, they search forward, undertaking private inquiries to allow clarification as to whether the debtor is still alive and whether chances of recovery are at best. In addition, it is essential to be aware of the debtor's solvency status.

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2. Legal Process to Recover Debt

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

2.2. 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.

Below, we've shed some light on the UAE judicial system.

2.3. 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 Judiciary comprises the Federal Supreme Court.

2.4. Abu Dhabi's Dubai, 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.

2.5. In the federal system, appeals from Federal Court of First Instance rulings are considered by the Federal Court of Appeal. T

he 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.

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3. Time Restriction

3.1. Law No. 5 of 1985 relating to civil transactions includes general restriction laws. An argument 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. Most 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

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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 Reconciliation and Settlement Commission,

the petition will 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.

4.3. The argument will lay out the groundwork for the conflict and the solutions pursued. There will also have to be a trial charge due.

4.4. The officers of the court will then support the defendant's motion, and the first date of hearing will be scheduled. If a defendant denies an allegation or can not be found, then a verdict can be rendered in the absence of the defendant.

4.5. 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.

4.6. 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.

4.7. The Court of First Instance's decision in regards to its conclusions of both fact and statute can be challenged. The Court of Appeal hears the whole matter again, and further representations and testimony may be made by the parties.

4.8. The petition must be lodged within 30 days of the date on which the decision is handed down by the Court of First Instance.

4.9. 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.

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5. Execution of judgments

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

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.

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

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 considered definitive judgment and can not be applied.

5.4. 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.

5.5. 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 file further appeals to the Cassation Court within 30 days.

5.5. Any Court of Cassation decision is binding and investors can properly determine debtors' ability to meet their financial obligations before dealing with expensive proceedings.

5.6. Notably, all investors are required to submit their claims 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.

6. Conclusion

6.1. Recovery before initiating legal proceedings is the most effective way to maximize the redemption of a loan.  

6.2. Debt collectors are mindful of those rules. Therefore they are more likely for their customers to deal with serious situations.

6.3. 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 collection of monthly payments or even a shortened settlement.

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