Debt Collection & Recovery
Alawi Al Jabri offers comprehensive debt collection solutions that meet your needs. Our expert legal team ensures the recovery of unpaid debts. We do that while maintaining compliance with local laws & regulations. We help businesses as well as individuals handle your claims with utmost diligence.
We employ strategic approaches to handle debt collection. Our team does negotiations on your behalf. They may also engage in mediation or legal proceedings when needed. Our aim is to achieve favourable outcomes for your company swiftly. Partner with Alawi Al Jabri for a seamless debt recovery process.
What is the Debt Collection Process in Dubai?
The debt collection process in Dubai is a legal framework designed to recover unpaid debts from individuals or businesses. It is governed by the Central Bank of the UAE & the UAE Penal Code. This process ensures that creditors and debt collection agencies follow strict legal guidelines to resolve outstanding payments lawfully.
Following is a breakdown of the process for debt collection in the UAE:
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Step 1: Contacting the Debtor
The first step is to contact the debtor. Debt collection services get in touch with the debtor through phone calls or emails. This serves as a reminder for the debtor to clear the debt.
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Step 2: Legal Notice
Lack of response to the initial communication leads to a legal notice. The debt collection services send a legal notice to the debtor, asking them to pay the outstanding debt within a specific time period.
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Step 3: Case Filing
If the debtor does not respond to the legal notice then a case is filed with the court. The debt collection agencies handle the case filing process. The court issues a summons to the debtor in court to defend their refusal to pay the debt.
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Step 4: Judgement Obtaining
If the court finds the debtor to be guilty, they issue a judgment in favour of the creditor. The debtor is now legally obligated to pay the outstanding debt.
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Step 5: Execution of Judgement
Debt collection agencies make sure that the court judgement is executed properly. The creditor may also have the right to seize the assets of the debtor. The court also orders to take the money out of the wage of the debtor or their bank account until the debt is paid.
What is the Punishment for Not Paying Your Loan in the UAE?
Not clearing your outstanding debt in the UAE can lead to a lot of problems for the debtors. They are eligible for legal punishments that range from blacklisting to time in prison. Here is a look at the common punishments for not paying your loan:
- The UAE credit bureau can blacklist a borrower who fails to pay their debt. They will have a negative credit history. This means that they will not be able to obtain credit in the future.
- The UAE penal code states that failure to pay your loan can lead to imprisonment as well, in severe cases. The debtor can face jail time for up to 3 years.
- Failure to pay your loan can also lead to a travel ban. The debtor will not be allowed to move out of the Emirate until they pay their loan.
Note: The punishment for not paying your loan in the UAE depends on the severity of the case.
Our Services
Debt collection requires extreme diligence. We take care of the hassle on your behalf to simplify the collection process. Here is a look at the services we offer:Debt Negotiation
We specialize in debt negotiations. Our experts help clients reach favourable agreements with debtors. Our attorneys facilitate open communication, exploring flexible repayment options. Our services reduce the likelihood of costly legal actions. We aim to secure timely & amicable solutions that protect your financial interests.
Debt Arbitration
Our debt аrbitration services provide an alternative to traditional court proceedings. We аssist clients in resolving debt-related disputes through arbitration. Our attorneys work to reach fair agreements. This reduces the strain of prolonged litigation while protecting your financial interests.
Litigation
In cases where negotiation or arbitration is not effective, Alawi Al Jabri offers expert debt litigation services. Our attorneys handle all aspects of legal action. They file claims and represent clients in court. We go for quicker results while protecting your interests at the same time.
Benefits of Our Debt Collection Services
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Legal Compliance
Our debt collection services ensure full legal compliance with applicable laws. We handle all collection processes within the boundaries of the law. This protects your business from potential legal issues, ensuring transparent practices throughout.
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Effective Collection
We recover debts quickly & efficiently using proven collection methods. Our team employs strategic approaches that match each case. This ensures a higher success rate in securing owed payments.
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Dispute Resolution
Our experts specialize in resolving disputes through negotiation. They may also do arbitration and litigation when necessary. We work to reach fair agreements that protect your interests while fostering positive relationships.
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Risk Mitigation
Our debt collection services help reduce financial risks by managing collections proactively & professionally. We minimize the chances of non-payment. This protects your financial interests in the long run. It allows you to focus on your core operations without worrying about overdue debts.