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The concept of debts can be traced from the time of the barter system, where people use to exchange goods and services. What if either party fails to deliver the promised goods in exchange of goods and thus, the need for claiming the debt arose.
The concept of debts can be traced from the time of the barter system, where people use to exchange goods and services. What if either party fails to deliver the promised goods in exchange of goods and thus, the need for claiming the debt arose. For half a decade we have been facing enumerable cases regarding outstanding debt in UAE and not in every case it is commercially viable for a company or an individual to file a civil case. Thus, Legal Consultants in Dubai will make it fairly effortless for you to collect outstanding debt in UAE.
Debt collection is basically chasing an individual to return payments owed to him or the company. It is dependably a decent choice to think about the accessible opportunities to recuperate your debt from borrowers outside the court. Appointing a debt collection agency, repetitive phone calls and emails and serving a legal notice are few of those examples which may be persuaded by debtors to recover outstanding amount. Nevertheless, the article is concerned about the steps which a debtor can consider prior to heading court as it may include initial investment as it turns out to be losing good money behind bad.
1. Determine the credibility
First and foremost strategy is to check the veracity of the creditor and his credibility in the market. You must also ascertain his past business relationships in the market to secure your debt. You may also seek a police clearance certificate in order to check if he has any pending case in the country.
2. Keep proper documents
We have come across numerous cases for outstanding debt, where the clients have no proper documents to evidence the outstanding debt such as the receipt of payments, any written contract or acknowledgement of the debt. It is always advisable to keep proper documents to be prepared for uncertain events.
3. Obtain a security Cheque
Any outstanding debt shall be secured from a security cheque which enhances the level of safety. As upon the maturity of the debt, you can en-cash the security cheque to seek the outstanding balance. Further, if the cheque is dishonoured, it is fairly easy to initiate a criminal and a civil complaint within UAE.
4. Amicable settlement
The debtor can reach out to several agencies which help in collecting outstanding debts or may appoint a Lawyer for serving a legal notice or a warning to settle the matter outside court, failing of which will lead to criminal or civil proceedings.
5. Ascertain your legal options
Lastly, failing to reach an amicable settlement leads to a next step of understanding the available legal options of registering a civil or a criminal complaint, bearing in mind the legal costs attached to the same.
Filing a Civil Case
Every now and then, the Lawyers of Dubai write articles regarding the procedure for initiating a civil or commercial dispute for claiming an outstanding debt. Federal Law Number 26 of 1999 on incorporating reconciliation committees in the Federal Courts obliges the parties to primarily reach out to the conciliation committees in order to resolve the matter amicably failing of which would allow parties to refer the matter to the relevant court.
Any matter referred before the court should be well documented with Arabic translations along with the appropriate court fees. The matter will then be decided by the court on merits and circumstances of the case. Either party after receiving the judgment from Court of First Instance have the right to file an appeal within 30 days from the date of the judgment before Court of Appeal and 60 days from the date of Appeal judgment to file the matter before Court of cassation.
The most effective approach to amplify recovery is to recover the outstanding amount without resorting to civil or criminal courts. The afore-mentioned strategies may prevent you from lending to debtors who have no intention to return the money owed to them.