What happens if a debtor leaves the country during the debt collection process in Dubai?

 If a debtor leaves the country during the debt collection process in Dubai, it does not necessarily mean the creditor will lose the ability to recover the outstanding debt. However, the process can become more complex and may involve additional steps. Here are the key actions that can be taken:

  1. Travel Ban: Creditors can request a travel ban through the Dubai courts to prevent the debtor from leaving the UAE if the debt collection case has been initiated. This travel ban is typically granted when the creditor files a legal claim and provides sufficient evidence that the debtor owes a substantial amount. Once a travel ban is in place, the debtor cannot exit the country until the issue is resolved.

  2. Filing a Legal Case in Absentia: If the debtor has already left Dubai or the UAE, the creditor can still file a legal case against them. The Dubai courts can proceed with the case even if the debtor is not present. The court will issue a judgment based on the evidence provided by the creditor, such as contracts, invoices, and other documents that support the debt claim.

  3. Enforcement of Judgments Internationally: Dubai has agreements with several countries for the enforcement of court judgments, known as reciprocal enforcement agreements. If the creditor wins the case and the debtor has assets or income in another country, the creditor can seek to enforce the Dubai court’s judgment in that country. This process involves legal action in the debtor's new location, but it provides a pathway for recovering the debt internationally.

  4. Seizure of Local Assets: If the debtor has left the UAE but still owns assets in Dubai, such as property or bank accounts, the creditor can apply for an execution order from the court to seize those assets. The court can authorize the freezing of bank accounts or the sale of the debtor’s property to settle the outstanding debt.

  5. Working with International Debt Collection Agencies: In cases where the debtor has relocated to another country, it can be helpful to engage a debt collection agency with an international presence. These agencies can assist with cross-border debt recovery and help track down debtors who have moved abroad.

Although the departure of a debtor from the UAE complicates the debt collection in Dubai, creditors still have legal options to pursue recovery through local and international legal channels. Working with experienced legal professionals can ensure that the appropriate measures are taken to protect the creditor’s interests

Comments

Popular posts from this blog

How Can Labor Lawyers in Dubai Assist with Workplace Investigations?

How Can Labor Lawyers in Dubai Assist with Employee Relocation and Secondment?

How Can Labor Lawyers in Dubai Assist with Employment Contract Termination for Cause?