It is certainly an arduous exercise and shocking to ascertain the overall impact of coronavirus on the life of the individuals and the economy of the world. We have experienced and are continuously experiencing the restrictions imposed by the government on various sectors to prevent further spread of the virus and safeguard the society.
One of the primary restrictions imposed by the government of UAE was the suspension of court services, which is gradually coming back in service. Commercial Lawyers of Dubai are of the view that such restrictions imposed by the government are even though in favour of the society at large, yet pose a grave tension among the creditors claiming outstanding debt, in the situation of the market is slow.
It is expected and is witnessed that the default rates of debtors will increase due to restrictions imposed on conducting businesses and creditors will be left at limited options to collect the outstanding debt from the market. Ergo, it is the time to gather all information and strategize plans to recover debts with the help of Top Lawyers of Dubai.
In general, a debtor has several options in UAE to initiate actions for debt collection, for instance, serving a legal notice to the other party through the assistance of a Legal Consultant in Dubai. The legal notices are issued with an intent to resolve the dispute outside the court authorities' jurisdiction and is an amicable way of resolving the issue or claiming the debt owed by the other party.
In most circumstances, the parties are unwilling to approach the court considering the cost involved in legal cases and the timeline to reach a judgment. However, we have seen major amendments in the civil law as explained in our articles concerning amendments in Civil Procedure Law, wherein establishment of fast-track judicial authorities allows the parties to execute the orders without notice for payment orders. Such remedies can be well utilized in these difficult times to expedite the cases for outstanding debt.
At this stage, we advise all our readers who are in a tough spot of claiming outstanding debt from their debtors, you can either immediately act upon it by highlighting the outstanding debt and offering an opportunity to the debtor to come forward and reach a negotiated amount, or you may wait until the current global crisis settles down. However, a laid back approach is only advised if you are aware of strong financial position of your debtor and you believe you will be able to recover your debt without the debtor filing for bankruptcy or insolvency.
In any of the event, the best approach is to conduct small due diligence on company's (debtor) financial position in the COVID-19 situation and accordingly must take suitable action of serving a legal notice or approaching the court to file a case. In cases, where you are uncertain if the company (the debtor) will survive this unfortunate turn of events, it is very much advised by the Lawyers of Dubai to immediately resort to legal assistance, before it's too late as the court are re-operational and are using virtual technology to register and attend hearings for which your Civil Lawyer can assist you with.