Debt Collection is a serious business, serious task and a serious professional activity to do. Please keep in mind that this is not a legal activity and this is only a mediation activity known as Debt Collection Services. Though there are laws and punishments against the debtors if they fail to pay the debt, but still the process is time taking. The UAE law of Personal Insolvency allows the debtor to pay their debts legally through a settlement plan. The UAE debt collectionlaws in United Arab Emirates, are not known to many people. There is a confusion between insolvency and bankruptcy. However, the difference is the former is associated with an individual and the latter is associated with companies.
The debtor does not need to invite any person for the legal application as per law. All he needs is to provide the documents that would confirm his repayment for debt. The details of those documents can be taken from the lawyer. Also, involving a lawyer is good, because he would know the debt collection laws. He will try to recover the debt while taking care of the laws. If you want to keep good relations with the debtor, you can ask your lawyer about it. Lawyers cum debt collectors will guide you that what are the requirements this regard, for example;
- Unpaid Purchase Orders
- Unpaid Invoices
- Case taken as borrow
- Email Communication as proof
- Messaging, Emails and Whats App Communication as a proof
Debtor Obligation: Pay on Right time
Whatever need to be paid, debtor should try to pay on right time. It can also let the payer to get a handsome discount. When the debts are paid on right time then additional duties are not put, and the amount top of the capital remains very little. Once the application is submitted to the court by the debtor with the provision of all the necessary documents, the court has to take the decision in a week. Once the court has considered the debtor’s application, then the creditor cannot proceed with the debtor. The debtor will make the financial compensation as per the court orders.
For such litigation, the court has experts to execute the plan completely. However, if the court rejects the Debtor’s application, he can appeal in the court. The verdict is then issued by the Appeal’s court. It is better to repay the debt as soon as possible. If you do not pay the debt, you will be getting calls by the debt collection dubaiagencies. Sometimes, they are very rude to talk to and you may have a difficult time talking to them. The other way to resolve the debt collection is to respond to their query at earliest. They would know that you are genuine and delays are acceptable. It will keep your good reputation, as well.
Modern Debt Recovery
Modern Debt Recovery is, the latest type of Debt Recovery. Now the “First Party Debt Collection Service” is not applicable more. Now the “Third Party Debt Collection Service” is the most popular format. Even in third party the Law Firms are much involved than a simple Debt Collection Agency.
Debts are also sold to other service providers e.g. Law Firms or the Debt Collection Agencies. Such deals are usually done on Contingent basis. It means that if there is a recovery then there is a fee for the service provider. Law Firms in United Arab Emirates are the most professional organizational hierarchies, where a dedicated team works under the leadership of a dedicated recovery expert. So if the legal action will have to be taken post-recovery efforts then there will be no need to engage the Law Firm, because everything will be available inside.