If you are a creditor who is having a hard time collecting the money you are owed, or if you’re a debtor struggling to pay back your loans, a legal professional can be hired to amicably retrieve any outstanding debts or bounced cheques for the creditor, or to settle the due amount on the debtor’s behalf, as a preliminary step before going to court.
We have a team of qualified lawyers that can help you recover unpaid debts by serving legal notices and directly reasoning with the debtor in an attempt to get them to pay the owed money. If hired by the debtor, our lawyers can negotiate with the creditor to persuade them to either extend the deadline for payment or to reduce the amount to be paid to them.
The initial approach that our lawyers take to collect unpaid debt is to resolve the dispute through mediation. An amicable settlement through mediation will make it easier and faster for the debtor to pay the due sum. Once the dispute has been resolved through mediation, both parties will enter into a written settlement agreement. If in an attempt to amicably settle with the debtor, the debtor is unresponsive to any contact from the lawyers, an investigation will begin to ensure that the debtor is still accessible.
In all cases, we try to avoid expensive litigation and work towards an amicable settlement. However, if both parties cannot reach a mutual settlement, the assigned lawyer, on behalf of the creditor, will start the litigation stage. A legal notice will be sent out, holding the debtor liable to pay back the debt, in addition to any fines. If the debtor still delays the payment of the debt, the lawyer will then take the case to court. The debtor will then be notified of the court date. In the event that the debtor fails to respond or take action, the court will pass a default judgment in favor of the creditor.
If the debtor attempts to pay some of the debt back, but there is still a delay in the payment of the remaining amount, the creditor is compensated with ‘post-judgment interest’. Thus, the debtor will have to pay more than the amount that was initially owed.
In the case that the debtor cannot afford to pay the debt back at all, the creditor can request an ‘execution’ order, which in other words, is an order to enforce the judgment. This execution order gives them the legal right to garnish the debtor’s wages or seize their personal assets. If the debtor files for bankruptcy, in most cases, the judgment can be discharged.
The Role of Debt Collection Agencies
Although the services that debt collection agencies offer overlap with what law firms can offer, there are some differences.
Debt collection agencies will pursue unpaid debts by continually contacting the debtor through e-mail and phone calls. This persistent contact will coax the debtor into paying the due amount.
On the other hand, law firms are capable of taking further measures in an attempt to retrieve the due amount. These measures, as described previously, include preparing legal notices and the required paperwork in order to set a court date.
In the case that debt collection agencies fail to recover the money, they have no choice but to hand the case over to a law firm in order for them to carry out the necessary legal action to ensure that the debt is paid.
Our team of talented lawyers is fully equipped to handle any concerns or disputes you may have about your unpaid debts. In addition to recovering money from organizations and individuals in the UAE, our legal team can follow up with outstanding amounts from debtors outside the UAE. We have a reliable track record of debt recovery in cases where credit agreements have long expired.
If you have any queries, please do not hesitate to contact our lawyers at +971 55 9230221. Alternatively, send us an e-mail and a representative will be in touch.