Debt Recovery And Collection In The UAE (No Win, No Fee – Out Of Court)

The United Arab Emirates is a country of amazing opportunities, which consists of approximately of 90% of expats who came to work, live and study in this country, raise and educate their children here, and who are very pleased with their choice thanks to the state policy aimed at harmonious, sustainable development and ensuring security of all who came to the UAE.

However, due to natural circumstances, such as Covid-19 for example, or deliberate illegal actions, organizations and individuals have to face a situation where they cannot receive the money promised to them under the contract or due to them.

Inevitably, they have to face an unpleasant and difficult situation of debt collection, look for ways to get the funds that they owe, as well as compensation and losses that they have suffered because of the delay of promised payments.  This is where our team of legal consultants in Dubai can definitely assist.

Clients of our law firm Hassan Al Reyami & Muhyealdeen International Legal Consultants often turn to us for help in debt collection and over many years of successful work in this area, our team of debt recovery lawyers and experts have been able to accumulate a lot of positive experience in resolving these issues.

Debt Recovery Process

Let’s take a look at the basic stages of debt collection that you have to go through to get a debt, sometimes you have to go through all of them, sometimes we manage to solve the issue at the first stage of collection, depending on the documents provided and the debtor’s ability to pay. They are pretty clear and strong:

1. Drafting Legal Notice
2. Mediation
3. Litigation
4. Enforcement

In addition, a final stage is – Settlement agreement, which can take place at each stage of debt collection.

Why do I need debt collection lawyers?

In our law practice, we faced with a variety of cases of non-repayment of debt due to different reasons and circumstances, and often the malicious intent of the debtor. The most common situations of non-repayment of debt includes the following:

• Unpaid Cheques
• Bounced Cheques
• Unpaid Invoices
• Unpaid Salaries
• Unpaid Loans
• Unpaid Service Benefits
• Bad Debts
• Delinquent Account Receivables
• Commercial Debts
• Insurance claims
• And a lot more

At the first stage, we try to resolve the issue through mediation with the debtor, through negotiations, submission of documents justifying the debt, explaining to the debtor the consequences that non-payment of the debt can lead to, but we also do not forget that our collection case may end up in court, and therefore, we must issue a legal notice to the debtor with an indication of the amount, legal basis and the timing of debt repayment. We also have to take into consideration limitation of time to have a chance to claim the debt.

Quite often in our legal practice, but unfortunately not always, the mediation process leads to resolving the issue of collection in favor of our client.

The best outcome of mediation and negotiations with the debtor on debt collection is the signing of a settlement agreement with him on the repayment of the debt and the release of the relevant documents and the failure to proceed with the process in court proceedings, in which our law firm has accumulated extensive experience, having signed many amicable and settlement agreements and collected debts out of court to deep satisfaction of our customers.

If it is impossible to resolve the issue by an amicable agreement, the client is forced to go to court to resolve the issue of debt collection. Over the years of its more than twenty years of legal practice, Hassan Al Reyami & Muhyealdeen International Legal Consultants has accumulated vast experience in debt collection in the courts and arbitration of the United Arab Emirates.

Our Dubai lawyers had litigated in over 160 international and over 200 local arbitrations and court cases with an outstanding client satisfaction rating of 98% and completed over 5000 court case and arbitrations in total with high success rate. We have accreditation in all the courts in the United Arab Emirates and have local advocates in our team, which can present our clients before local courts.

A debt collection case won in the court is not a guarantee that you will receive your debt. A very important and difficult stage is the collection process, which includes investigating the property, accounts and assets of the debtor. Therefore, in the process of debt collection, it is necessary to legally competently provide that the debtor could not withdraw or hide his assets, thereby depriving you of the possibility of collection.

Why we recommend contacting debt collection specialists

The main reason for the failure of the collection of the tax is that the client is often not familiar with the laws of the UAE or does not understand them well, cannot properly draw up his claim, is in a stressful state, has chosen the wrong strategy for collecting a debt, and sometimes he simply cannot agree or talk in the same language as the debtor or his lawyers. For the creditors is also very important to come into contact with debtors as soon as possible, because he can have another creditors and because of that, there could be a lag behind other creditors demanding payments.

Regardless of the complexity of your debt collection case, Hassan Al Reyami & Muhyealdeen International Legal Consultants can assist you in debt collection in United Arab Emirates, and our legal practice covers all seven Emirates in United Arab Emirates. No win – no fee (out of court settlement), this is the guarantee of our work for you.