Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. The duty or obligation arises out of debt usually secured through the negotiable instruments or debt agreement by which the lender can recover the amount due through the permissible legal remedies available under the jurisdiction, if failed through the international remedial institutions.
In the fast growing commercial world, the debt occurred out of defaulted payment of purchased invoice or other hire purchase terms often give way to the bad debts especially when the amount stands small in commercial terms. In such situation, the small and medium enterprises are forced to give up the marginal profits and even the costs. The small and medium entrepreneurs fuel the business out of invoiced debts and market capital. The absconding of borrowers from the market even questions the sustenance of innocent small and medium entrepreneurs. The market research reveals that cyclical business loss and profits compels the untrained borrowers to run away from the market without paying off the debt. Although such absconding and run away options shall create the legal consequences. But the innocent seller, to whom the amount is due on account of goods sold or service rendered or terms agreed left with no other remedy than to convert legitimate debt to bad debt. The banks and financial institutions can wait until the person/company return through the mechanical legal processing, but those individuals or companies who has substantial payment due from another company/individual can recover the debt through the help of debt recovery legal professionals irrespective of the amount due and to wherever the person concerned absconded.
As per UAE law, the debt does not ceased at the border, the liability shall run until the repayment is affected. The majority of the people think that nothing can be done if the buyer/borrower has not paid back the debt. Since UAE is the party to the Riyadh agreement, the judgment of UAE court can be enforced outside the jurisdictions, what is required in the circumstances is the proper strategy planning and execution follow up to trap the debtor to bring back the debt.
Author is a qualified Lawyer and senior associate with Mohamed Aleghfeli Advocates & Legal Consultants, Dubai with a strong team of UAE Advocates, Attorneys, Lawyers, industry leading experts, Legal Advisers and Legal Researchers. We offer full-fledged Legal service in all spheres of law throughout United Arab Emirates and throughout the globe for corporate transactions. Our focus is in providing legal advice and litigation in the courts and tribunals in disputes of business, institution, industry, properties, media and individuals. Can be reached at +971-509663042