Recovering a debt can be a frustrating and stressful time. You could be met with seemingly impenetrable companies, withholding your rightful money. Or, strain could be put on a longstanding friendship, causing emotional distress. Getting your money back from someone overseas adds an even bigger element of headache and complications into the mix.
If you are owed money from a person who resides in Dubai, JMR Solicitors can help you recover this debt. Our team of legal experts have extensive knowledge and experience of legal procedures in the UAE. We can offer guidance to businesses and individuals alike on dispute resolution in Dubai, including debt recovery.
To understand how you can recover a debt owed to you by a Dubai resident, we’ve created this helpful guide.
Debt Collection in Dubai
The word “debt” tends to immediately conjure negative feelings. The reality is, debt isn’t inherently a bad thing. A debt can be defined as a financial responsibility incurred by an individual or organisation in exchange for goods, services, a loan, or any other liability with monetary value attached. It’s when the debt is late being paid according to the original agreement that it becomes a negative thing.
When you are owed money from a person who lives in Dubai, the simplest course of action is to try to resolve the matter out of the courts. It can be difficult to recover outstanding debts in the UAE, due to the lack of specialised courts. The absence of specialised financial litigation in Dubai means that cases must be decided by the decided by the Federal Supreme Court or the Court of Cessation, both of which are governed by civil law.
Non-Judicial Debt Collection
Engaging in judicial proceedings is not a popular method of debt recovery in the UAE. In fact, this is largely true of many other countries around the world. Instead, out-of-court debt collection agencies are called upon to assist in such matters. This is due to a number of benefits:
- Reputation (the protection of)
Debt collection agencies will contact debtors via email or telephone, reminding them of their outstanding debts. To form a strong case, these agencies will also gather all the available information relating to the debt, i.e. documents, receipts, written contracts or acknowledgements of the debt.
Fair Debt Collection
In Dubai, a debt collection agency that is worth its salt should determine the reasons why a loan or debt has gone bad. Why was the debtor unable to pay in the first place, what is their payment history (if any), have they been evasive, and what is their current situation?
With all these factors considered, an agency can then determine the potential opportunities for collection relating to the debt.
It is the responsibility of a collection agency to act as the facilitator, both for the client and the debtor. They will seek to educate and inform the debtor of the legal implications of not paying a debt. Here, the agency can also serve as a mediator and arbitrator, helping a realistic and achievable resolution be reached.
Not all debtors try to run and hide. A person who owes you money may be trying their best to repay the debt, but are struggling to keep up. The UAE debt collection process can involve debtors receiving support in repaying loans. There are federal laws for insolvency in the UAE which offer help with debt relief. This help includes debtors being placed on a three-year repayment plan to support them in paying off loans, as well as providing opportunities for debtors to be proactive in avoiding legal action being taken against them.
First Steps in Recovering Debt in Dubai
To start the ball rolling with getting back the money you are owed, you will, in most cases, have your lawyer serve a legal notice to the debtor. After this, follow-ups will be consistently carried out until the matter is settled.
If a debt collection agency needs to become involved, and the debtor ignores or refuses to cooperate with them, then a court case will need to be filed. Court proceedings in the UAE are conducted in writing, so it is vital you seek legal experts to assist in this process.
JMR Can Help with Recovering Debt in Dubai
Recovering debt can be a tense time, so it’s best to seek the assistance of experts who can navigate the situation professionally and respectfully. JMR Solicitors can help you if you are owed money from a person who reside in Dubai.
With roots in the UK, our team has strong knowledge and experience of UAE law and Dubai, specifically. We regularly travel to meet clients in Dubai, providing a tailored service to suit individual needs. Don’t stress needlessly about Dubai debt recovery, and let our team assist you in getting your money back.
Contact us today at firstname.lastname@example.org or call on +00161 4913933.