Debt is an amount borrowed by a debtor from creditor with an agreement about the return details. The debtor is bound to return the debt within defined time agreed upon the time of agreement. A fixed amount of interest has to be returned along with the original amount.
Debtor usually takes the debt for operating needs or purchasing the capital. Debt should be secured through the debtor other assets. In case if the debtor fails to pay off the debt in a fixed time, those assets become property of the creditor. In some deals, the guarantee can also work as a securing tool.
Debt recovery is the process of making the debtor (person or company) to pay his debt if he failed to pay debt within given time frame. In such case the debt recovery services provided by the professional debt recovery agency is the best solution.
The process debt recovery service in Sharjah is of three steps. These steps are letter before action, legal action and judgment and enforcement.
When a creditor asks the services from a debt recovery agency, the agency asks all the details about the debt. In the first step, the agency sends a notice to the debtor and asked to pay his debt within one or two months time period, otherwise legal action can be initiated. The settlements are given a try. The debt collectors of debt recovery agency try to convince him to pay his debt and avoid the legal process. If the first step does not get a success then legal action can be initiated. The debt recovery agency lodges the legal action against the debtor. In Sharjah, according to the UAE law, the civil court handles the debt recovery cases. The court decides about the debt recovery and orders to return the amount within 7 days along with the compensation.