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.
The Strategies:
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.
Â
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.
Â
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.
Â
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.
Â
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.
Conclusion
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.Â
Please Drop Your Comments