Debts can be traced back into the ancient times of barter system before it was replaced by metallic currency. During this era, people exchanged goods with each other for services and goods in return; what happens when a person exchange goods and the other party failed to provide with service in return? It ends up being in a Debt. Many people often find the support of lawyers specialized in debt recovery in UAE when they run into serious financial troubles. Therefore, it is essential to keep an eye on the cash flow and expenditure of your company. The legal procedures revolving around the successful recovery of the debts is well regulated by the government and majority of the cases are settled through the court judgements.
Debt Recovery Process in The United Arab Emirates
Majority of the people often seek the help of a legal advisor who can assist them with the successful recovery of the debts. Debt Recovery Lawyers start the whole procedure by sending a legal notice to the opposite party through mail and courier and give a certain time frame to respond to the legal notice that has been issued. They also follow up with the debtor frequently to settle the money. However, upon failure to do so, a civil case or commercial case shall be initiated. The civil or commercial case can only be initiated after referring to the reconciliation and settlement committee appointed by the Ministry of Justice. When the settlement attempt fails which is initiated by the reconciliation and settlement committee, the claim will be transferred to the court. Furthermore, the court official shall serve a claim on the defendant and date will be set for the first hearing. In case if the defendant ignores a claim or cannot be located, it is still possible to get a judgement. After both the parties have exchanged pleadings and other submissions, the court shall then reserve the case for the judgement and a date for hearing will be scheduled for issuing the judgement. In some cases, the court may be open the case to clarification on the case from either of the parties.
Execution of Judgements
The creditor cannot execute a judgement against a debtor before it is final and certified by the Execution Court. This is a separate department in the court and there are a team of judges designated to administer and initiate enforcement of judgement.
Court of First Instance Judgement can be only enforced when both parties fail to appeal against the judgement within a time frame. If either of the party fails to appeal within the time limit the judgement issued by the court of first instance is not considered to be final.