What Procedures are Involved in favor of Debt Recovery?

Preliminary stage

A creditor has the proper to issue a pre-action letter. This letter is critical because it sets out the marvelous obligations of the debtor. This pre-action letter sets out a harsh deadline for imbursement of debt and sometimes a provocation to satisfy and converse and reach a settlement.

Amicable settlements

What negotiations are often made? A negotiation with the debtor is that the superlative plan to reach an amicable settlement before resorting to any litigation. Both parties must work meticulously to assess and reach a communally acceptable resolution. The debtors could also find yourself paying late fees or interest on outstanding debts after the settlement.


The parties might choose for arbitration so as to resolve the disputes that are associated with debt recovery in UAE. The arbitrator has the sense of hearing the evidence brought by each side plus makes a choice which is obligatory on both the parties.
a.       Reliefs provided within the settlement
b.       Providing extended payment terms
c.       Offering discount
d.       Reducing the debt amount

Judicial proceedings in debt collection in Dubai

Debt recovery by court procedure is a further choice to declare outstanding dues. A creditor can file a civil case concerning debt collection in Dubai which could ensue with normal litigation before the court.

Reliefs provided by the court for creditors

a.       Attachment of debtor’s movable property
b.       Attachment of stocks and bonds
c.       Sale of land property

Risks involved in debt recovery

When considering the debt recovery process, one must also believe the subsequent facts:-
a.       Impact of delay and price
b.       Risk of not achieving a positive outcome
c.       considering the financial status of the debtor.

Preventive measures

Following measures should be considered before providing a debt recovery facility:-
a.       Having a well-drafted contract and powerful credit control
b.       addressing the payment terms and conditions
c.       including dispute resolution clauses can avoid lengthy dispute procedure afterward.

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