14 Apr 2022
“The fact is, we’ll never build a lasting economic recovery by going deeper into debt at a faster rate than we ever have before,” is a statement made by Ronald Reagan. He was the 40th president of the United States, in one of his speeches in 1976, stated that the perils of debts would affect the economic stability of a country. From the ancient civilization, starting from 3000 BC barter system or debt collection is practised by man. It was an exchange of goods and services in those days, while today, no such goods and services are exchanged. What will be the methods when the parties fail to deliver the promised goods and services in the present scenario? It generates a need to recover the debt. In ancient ages, there were various ways to recover debt, including the death sentence, slavery, and the right to take the debtor to court as per the governing laws. With the pace of time, the legal processes related to debt recovery have become more synchronized.
Now, is it necessary that one should go to the court itself for the recovery of money? It is said that compromises are always the cheapest lawyer. The best option to recover the money before going to court will be to utilize the accessible sources and opportunities. Such as issuing a legal notice or registered mails, making follow-up calls to get in touch with the debtors for the repayment are always preferred methods that usually give good results. Ergo, the financial stability and the age of the debtors also play a crucial role in such cases. Most of the time, the claims which are not amicably settled between the parties related to the debt recovery will be fixed inside the courts.
The courts of different countries have developed their system to deal with different types of money claims. This article will examine the Debt recovery in 5 countries, such as Saudi Arabia, Kuwait, Oman, Bahrain, and Qatar. We will review the court procedures to recover the debt in respective countries and the laws about it. We will also look into the Prelitigation process, Debt collection procedures, and Court procedures dealing with the debtors.