Execution courts in the United Arab Emirates (UAE) are overseeing the structured legal process for the enforcement of debt judgment UAE.
When a competent court makes a final, enforceable judgment in a civil or commercial debt case, a creditor can initiate enforcement proceedings immediately to recover the unpaid debt.
To clarify the enforcement process, the following section provides a detailed, step-by-step guide on how UAE execution courts enforce debt judgments.
How to Obtain a Final Judgment
Before taking any steps to enforce the judgment, the creditor must have a final and enforceable judgment.
A judgment will only reach this point when the debtor has either fully exhausted their appeals or they have expressly waived their appeals. Furthermore, many courts also require the trial courts to certify that their decision is final.
Additionally, the judgment must be clear as to the total amount owed and who the debtor is. This step is extremely important in the process of debt collection Dubai, to ensure that any further enforcement obligations are based on solid legal foundations.
Filing an Execution Application for the Enforcement of Debt Judgment UAE
Once the creditor has received their signed judgment, they will promptly file an execution application with the relevant execution court.
To do so, the application must include a copy of the signed or final judgment, an order for execution request, for example, a letter to the court for it’s order, and supporting documentation, including identification documents (ID card or passport), power of attorney (if applicable) and evidence of non-payment by the debtor.
Once the application is received, the court opens an execution file by assigning a case number to the matter. This is an important step in the debt collection Dubai process, permitting the creditor to take action in order to recover the amount owed to them.
Debtor Notification Process
Following the opening of the file, the court immediately sends the debtor a notice of execution order. That notice will generally be accompanied by a grace period, usually seven days, during which the debtor can satisfy the judgment voluntarily by paying the amount owed. If the debtor does not act during that grace period, the court will begin enforcement actions without further notice.
Asset Investigation in the Enforcement of Debt Judgment UAE
If the debtor does not comply, the execution court commences an asset investigation to uncover the debtor’s assets.
This entails, among other things, the two phases or stages which may involve freezing bank accounts, requesting employment or salary information, investigating any titles of real estate owned by the debtor, vehicles owned by the debtor, or commercial or investment interests held by the debtor.
This is hugely important to collect owed debts in Dubai, as it allows the court to ensure they have a current snapshot of the debtor’s capacity to pay and can thus move forward with enforcement.
Imposition of Enforcement Measures
According to the findings from the inquiry, the court can then impose a range of enforcement mechanisms to satisfy the debt owed. First, it can freeze the debtor’s bank accounts up to the value of the judgment. Then the court can order a salary attachment, taking a chunk of the debtor’s salary until the debt is satisfied.
It can seize moveable or non-moveable property, like vehicles, real estate, or business assets, and sell them at public auction or court auction. In some cases, it can also impose a travel ban on the debtor, preventing them from leaving the UAE.
Finally, as a last resort and under the conditions of the law, the court can even send the debtor to jail for continued failure to satisfy the debt. Enforcement mechanisms, legal remedies in debt collections UAE can work, even through enforcement mechanisms!
Conclusion
In conclusion, enforcing a debt judgment in the UAE can be considered a well-defined process of the law, and is performed by execution courts through steps outlined in the law. The creditor must first obtain the final and enforceable judgment after all appeals have been completed or waived. Once the creditor has an enforceable judgment,t it may file an execution application supported with the documents noted above to start the enforcement process.
The court will then notify the debtor and provide a brief grace period to voluntarily pay the amount owing. If the debtor does not respond at the end of the grace period, the court will move forward with obtaining an asset investigation into the debtor’s financial resources.
An asset investigation is an important step in effective debt collection Dubai, allowing the Court to know what assets or income can be used to satisfy the debt.
After the investigation, the Court has multiple enforcement methods for assets to get a good understanding of debt collection UAE. These legal tools, including freezing bank accounts, garnishing salary, seizing property, travel bans, and even imprisonment, are valuable tools to provide creditors a means to recover what is legally owing.
If you require assistance implementing the enforcement process for your cases, Khairallah Law Firm is always ready to assist with trusted support from some of the Best Lawyers in Dubai to ensure clients go through the enforcement process properly and successfully.
Having said that, contact Khairallah Advocates & Legal Consultants and benefit from our free 30-min legal consultation.
*Disclaimer: our blogs, law updates, and FAQ’s are freely distributed for educational purposes and to showcase recent updates and regulations in the UAE’s framework.
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