If we talk about Debt Recovery then we need to discuss developed and less developed regions both. If we have to discuss the Debt Collection Process, then we should also consider the Law Firms and the Advocates. Law Firms in Dubai and Advocates in Dubai both play a vital role in Debt Recovery. For example, when a legal notice or notice by the notary has to be served then lawyers or advocates monitor the process. A private legal notice by the law firm is drafted by and served by the advocates. It can be a company or a person for recovering debts. It can be for mitigating the Debts in the market or managing the debts in the market. United Arab Emirates would top the list where collection services are badly needed. It is a tiring and time-consuming effort that might not be worthwhile. The business owners are trapped in this vicious circle of debt collection. It should not be a hassle for the clients, but still, there are many challenges faced by debt recovery dubai companies and their clients. So the major way is to hire a Law Company in UAE to secure your interests regarding debt recovery or any other Financial Recovery. The benefits are as follows:
- Legal Support
- Experts of Law e.g. Advocates and Legal Consultants for the legal solution
- If it is not resolved, then Civil Case can be filled
- Civil Court expertise is also required
- Legal Documentation and checking are also required
- Global Financial Disputes are also managed
- Court Presentations and Representation
- Court Services from 1st, 2nd to 3rd
- Public Prosecution Management for Criminal Cases
- Every Kind of Management
Now To Understand Debt Collection
To understand the ways of debt collection, one should understand that debt is when the buyer purchases any good or service on credit. In most cases, the new business owners keep the credit policy to make new customers in the market. They are unaware of the fact that the debt collection process is more difficult in the UAE than anywhere else. Keeping in mind that the UAE has one of the most difficult laws for debt collection, therefore a few important aspects should be remembered. To begin with the debt recovery laws, it is advised to the business owner to have a proper contract with the customer that has mentioned all the terms and conditions. They should provide a proper invoice that has mentioned the total payment amount, the advance, and the credit amount. It would be even better if both parties would add a time frame to the contract to pay back the debt.
To have a secure repayment, post-dated cheques can be made. It would be helpful for the business owners if the customer doesn’t pay the debt in the chosen timeframe. The charging of interest is yet another thing one needs to know in the UAE. Some business owners are confused to charge interest in the UAE because Islamic law – prohibits charging interest. However, Article 76 of the UAE Commercial Code of Practice allows the creditors to demand interest for a commercial loan. Sometimes, the cheques are bounced. If this happens with any business owner, he can create a criminal case against the bounced cheque. He should have all the important documents and records to file a legal complaint from the signatory, including his identity card and passport copies.
- Legal Offices in Dubai, means the legal offices in Dubai by Dubai-based lawyers who are Emiratis.
- It has been noticed in the last few years that now the Dubai Law Firms have established quality separate and dedicated and well-managed departments for the Debt Recovery Services.
- These departments only work on collection or recovery tasks.
- If a legal notice has to be served then the legal department helps to draft and serve the warning notice.
- If it works then the recovery team collects the debt.
- If it does not work then again legal department takes up the matter as a case, this time.
- Civil Lawyers or Commercial Lawyers, usually file the cases and manage the process in Civil Court.
- Legal Offices are always the first priority needed for the creditors, employers, investors, businessmen, entrepreneurs and even the debtors.