Securing Payment from a Debtor with No Funds
A retail supplier in the UAE had a complex debt collection case because the debt had been unpaid for more than six months and the debtor claimed that he was financially unable to repay the AED 300,000 debt.
This situation confused the creditor and made him hesitant about conducting debt collection procedures, so he needed the help of a professional debt collection agency in Dubai, and he chose “Quick Action” as his partner in this complex debt collection case.
Challenges
The first challenge was the age of the debt since the debt hadn’t been recovered for more than 6 months and it surely made the collection process harder.
But the main challenge in this case was the debtor’s claim that he suffered from severe financial hardships that left him with no funds or assets to repay his outstanding debts.
We faced another challenge when we decided to perform a legal solution, but the client was uncertain about legal actions because he worried about its bad impact on his reputation and his relationships with his customers.
Solution
When a debtor claims that he can not settle the debt, we never rely solely on the debtor’s word. Instead, we verify his real financial situation through different legal channels to make sure that he is not manipulating.
In this debt collection case, our debt collection experts learned that he was manipulating since he had hidden assets but he wanted to avoid repaying his outstanding debts.
So we held a meeting with the client and explained the different aspects of the case and finally he was convinced that the legal approach is the best solution for this case.
Then, with the help of our legal partner “Dr. Ahmed Al Ramsy Advocates & Legal Consultancy” we conducted the required legal actions and filed a case in mainland UAE courts and the court rules were in our favor but the debtor was still claiming insolvency so we performed enforcement measures that resulted in imposing a travel ban on the debtor, freezing the debtor’s bank accounts and also placing restrictions on his trade licenses and traffic files.
After completing these legal actions we became sure that the debtor wouldn’t be able to manage his business or travel freely, and these restrictions would force him to repay the debt sooner or later.
Result
The case remained unsolved for months, but approximately one year later the debtor contacted us because he wanted to urgently settle the debt since he needed to travel for personal reasons but he couldn’t do that due to the travel ban.
Finally, the debtor has repaid the full amount of the debt within less than two weeks to lift the travel ban.
Our client was ultimately satisfied because he expected that he would not be able to recover his debt, but he finally realized the importance of legal procedures in some cases and he relied on us to solve all his future debt collection cases.