Alqada’s Top Legal FAQs on Debt Recovery in the UAE

15 July
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If there’s one thing we’ve learned from working with hundreds of clients across Dubai and the UAE, it’s this- legal advice is never a one-size-fits-all deal. At Alqada Claim Recovery Services, we hear plenty of questions every single day. Some are about contracts gone wrong, others about bounced cheques, and many about how to recover unpaid debts without ending up tangled in court battles.

And yes, when it comes to debt collection in Dubai, people have a lot on their minds. Whether you’re a business owner, a freelancer, or someone just trying to protect their financial interests, the legal system here comes with its fair share of rules and surprises. That’s exactly why we thought it might help to share some of the most common legal questions we get from clients — and the honest answers we give them.

“Can I Really Recover a Debt in Dubai If the Debtor Refuses to Pay?”

Short answer is- Yes - but with the right process.

UAE law is clear when it comes to debts. Under UAE law (Civil Code, Federal Law No. 5 of 1985), creditors have every right to ask for what they’re owed. But when friendly reminders and follow-ups don’t get you anywhere, it’s time to take more formal action.

This is where hiring a Dubai debt collection agency like us makes a real difference. We step in before things escalate to court. Our job is to handle negotiations, deliver formal demand letters, and work with the debtor for a resolution. Going legal is always an option, but most debts in Dubai get settled out of court when handled properly by experienced professionals.

“Is It True That Bounced Cheques Are a Criminal Offense in the UAE?”

They were - but not anymore, at least not in the way people think.

Until a few years ago, bouncing a cheque could easily land someone in jail. However, under the new amendments (Federal Decree-Law No. 14 of 2020), bounced cheques are now treated mostly as a civil matter, not a criminal one. This means if someone gives you a dud cheque, you have the right to claim the amount, but it won’t necessarily result in a criminal case.

That said, there are exceptions - like proven fraud or bad intent - where criminal charges might still apply. A good legal advisor will help you figure out the right approach based on your case.

“What Can a Legal Services Lawyer Actually Do for Me in a Debt Case?”

A lot more than most people realize.

Sure, you can chase your debtor with reminder emails and polite calls, but legal professionals bring structure to the whole process. A legal services lawyer can draft demand letters that are enforceable, negotiate settlements on your behalf, and if necessary, initiate legal action in Dubai courts.

The point is — you don’t have to face the hassle alone. Having someone who knows the ins and outs of debt collection Dubai laws means you’re not wasting time with empty threats or risky moves.

“Do I Really Need a Lawyer to Draft a Contract?”

You could technically download a template online… but don’t expect it to hold up in a UAE court if something goes south.

In the UAE, contracts are governed by the Civil Transactions Law, and every word matters. Whether it’s a business agreement, partnership deal, or personal loan, a solid contract can protect you from major headaches later. A lot of the clients we work with come to us after realizing their contract didn’t cover key details. That’s why having a qualified legal advisor review or draft your contract isn’t just smart - it’s essential.

“How Does Debt Collection Work for International Cases?”

Great question and one we hear a lot from businesses dealing with overseas clients.

If your debtor is outside the UAE, the situation gets trickier. The UAE has signed several international treaties on judicial cooperation, which means you can pursue cross-border claims. However, it depends on the country, the nature of the agreement, and whether there’s a jurisdiction clause in your contract.

This is where working with a debt collection agency in UAE experienced in handling cross-border matters helps. We coordinate with international partners, understand foreign legal systems, and help clients navigate the maze of international debt recovery.

How Much Time Do You Really Have to Collect a Debt in Dubai?

Not everyone knows this, but you can’t wait around forever to chase a debt.

In the UAE, there’s a legal time frame for making a claim. The general rule gives you up to 15 years for civil matters -including debts. But it’s not always that simple. In many business-related cases, especially commercial debts, the window might be a lot shorter - sometimes even three to five years, depending on how the case is classified.

So, if you’ve been holding off or hoping things will sort themselves out, you might want to rethink that. Once your time’s up, there’s not much even the best debt collectors in Dubai can do. That’s why it pays to check your options before the clock runs out.

Why Do People Choose Alqada Over Other Legal Service Providers?

We hear this a lot and fair enough, it’s a valid question.

We don’t believe in overcomplicating things with heavy legal talk or rushing everything straight to court. That’s not our way to deal with the situations. At Alqada, we focus on solving problems in the most sensible way possible- whether that’s a direct negotiation, a fair payment plan, or turning to arbitration if needed.

And we keep it real with clients. You’ll know what it’s going to cost, how long it’s likely to take, and what you can actually expect in the end. No sugarcoating.

Maybe that’s why people don’t see us as “just another debt collection agency in UAE” - they know we’ll actually follow through on what we say.

Can a Company Really Get Blacklisted Over Unpaid Debts?

Yes. That’s not just a rumor.

In the UAE, unpaid debts aren’t something you want hanging over your head - especially in business. Companies that fall behind on payments can face real consequences, like being blacklisted, blocked from travel, or having their assets frozen.

It’s a risk no business whether big or small should take lightly. When payment problems start piling up, smart companies bring in professional debt collectors in Dubai before things spiral. Because once the situation hits that level, fixing it isn’t always quick or easy.

Wondering What to Do If You’ve Got a Legal Issue in Dubai?

We know how overwhelming legal problems can feel, especially if you’re unsure of how things work here - or if you just don’t have the time (or patience) to chase after unpaid invoices yourself.

That’s why finding the best legal services in Dubai comes down to one thing: working with people who actually listen and help you figure things out - not those who just throw some fake promises your way.

At Alqada, we have expert legal advisors and consultants. Whether you’re dealing with a tricky contract, a tough debt collection Dubai case, or need honest advice from a reliable legal advisor, we’re here to help make the whole process a lot less stressful.

Let’s Handle It Together

If you’re stuck with a legal problem or fighting through a debt Dubai issue, don’t let it drain your time and energy. Reach out to Alqada - we’ll walk you through your options and help you figure out a way forward. No hard sell, no complicated jargon - just straightforward advice and support you can count on.

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