Debt Recovery Cases

Debt Recovery Cases in the UAE

In the United Arab Emirates, debt recovery cases are among the most common legal challenges faced by both individuals and businesses. These cases are governed by Federal Law No.18 of 1993 (Commercial Law) and Federal Law No.11 of 1992 (Civil Procedure Law on Enforcement), in addition to the regulations of the enforcement courts in each emirate.

1. Amicable Settlement

Debt recovery usually begins with an amicable approach, where the creditor contacts the debtor to request payment. This may include sending official notices that specify the amount due and deadlines, allowing the debtor to settle before litigation.

2. Judicial Recovery

If amicable efforts fail, the creditor may file a lawsuit before the competent court to prove the debt and obtain an enforceable judgment. This requires providing clear evidence such as contracts, invoices, or official documents proving the debt.

3. Enforcement of Judgments

Once a judgment is obtained, the case is transferred to the enforcement court to ensure compliance. This may involve freezing bank accounts, seizing assets, garnishing wages, or placing liens on properties. This is the most critical stage as it translates the court judgment into actual recovery.

4. Amicable Settlement Committees

In some emirates, such as Dubai and Abu Dhabi, special committees exist to facilitate friendly settlements between disputing parties, aiming to resolve issues without lengthy court procedures.

Role of Al Khalifi Law & Legal Consultations Office

Al Khalifi Law & Legal Consultations Office provides specialized support in debt recovery cases, from initial consultation through litigation and enforcement. The firm’s experienced team has in-depth knowledge of local laws and enforcement mechanisms, ensuring clients’ interests are protected and debts are recovered effectively and efficiently.