The matter of debt collection is quite time-consuming and involves various complexities. The arbitration regarding debt collection can be initiated by both creditor or the debtor. however, to start the arbitration, it needs to be present in the contract already.
In this process, the creditor or the debtors are supposed to submit their dispute to the credible arbitrator. It is submitted to settle the claims of the debt made by the other party. The party that makes a claim can be both a creditor and a debtor.
Based on the arguments of both parties, the arbitrator will come to a verdict and decide on a solution that follows the legal standard. The settlement may provide few reliefs provided to debtors as well. You can also consult debt recovery Dubai agencies for efficient techniques for this relief.
Types of Reliefs
Below are some types of reliefs provided for the debtors through the decision of arbitration.
- Providing Extended Payment Terms
There are times when the debtor is unable to pay the debt due to some incomplete projects. Moreover, the debtor might be expecting some amount in the coming days. Therefore, the debtor is provided with an extended date so that they can pay the creditor the due amount.
Sometimes, the debtors ask for the extended terms themselves. It is to avoid legal penalties mostly. However, the debtor is given that extended time to see if their claims are true or false.
- Offering Discount
Another relief that is provided to the debtor is offering a discount. There are cases in which the debtors are financially crippled due to some unfortunate incident. The creditor doesn’t want to lose the entire amount due to the circumstances.
Hence, the debtor is offered a discount so they can pay some of the amounts to the creditor. however, if later the debtor doesn’t pay the discounted amount, you can seek legal assistance from the debt recovery Dubai agencies.
- Reducing the Debt Amount
If the arbitrator finds out that the debtors are unable to pay the amount with discounts such as installments as well, they decide to reduce the amount. Although it is the last thing the creditor wants, they don’t want to lose the entire amount.
Moreover, both parties are supposed to listen to the arbitrator. Hence, the amount is reduced as a relief for the debtor.
To Finalize
Hence, there can be circumstances when the debtor is looking for some relief as well. The arbitrator then decides to do so for the welfare of both the creditor and the debtor. The debt recovery Dubai agencies can help you in the arbitration reliefs if you find any difficulties. They provide their services in Abu Dhabi, Ajman, Sharjah, Fujairah, and other states of the UAE as well.