A company’s debt is not the director’s debt

Over a company’s debt, the director is not banned from travel and their personal accounts are not attached, unless the non-payment is linked to them personally. We establish exactly who the debtor is before filing.

Violetta Absalyamova

Business support and legal matters

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Legal Services in the UAE

Debt Recovery from Companies in Dubai and the UAE

Q: What is a payment order, and does it fit my case?

It is a simplified procedure for monetary debts of a fixed amount, confirmed in writing or electronically, that have fallen due; a debt under a promissory note is recovered the same way. The creditor sends a demand with a deadline of at least five days, then files an application, and the judge decides on the documents, without hearings — by law within three working days. The order must be served on the debtor within three months, otherwise it lapses. The debtor challenges an order for up to AED 50,000 by an objection within 15 days, and a larger one by an appeal within 30 days. Cheques don’t go this way — they are enforced directly. It doesn’t fit if the debtor disputes quality, scope or set-off.

Q: How do I properly send a demand to the debtor?

The demand is a condition of the short route: for a payment order, the debtor must first be given at least five days to pay, and delivery must be proved. So we prepare the demand in Arabic and English, with the amount, calculation, deadline and consequences, and deliver it through a notary or by registered mail. A copy by email and messenger won’t hurt, but the proof is official delivery. The tone is businesslike, with no threats of the police or deportation. If the debtor offers a schedule, we formalise it in writing and with security.

Q: A cheque has bounced. Do I need to go to the police?

As a rule, no. Since 2022, insufficient funds on a cheque are not a crime: a cheque bearing the bank’s mark is presented to the execution judge for the full amount or the balance, without a lawsuit. You need the original cheque and the bank’s certificate, and it is important to present the cheque to the bank within six months of its issue date. What remains criminal: closing the account, stopping payment without a lawful reason and a cheque deliberately drawn so that the bank cannot pay it. A criminal case does not prevent recovery.

Q: Can the debtor’s accounts be frozen before a court judgment?

Yes, if there are grounds to fear that the debtor will move or hide money or leave the country; a separate ground is that the debtor has no permanent residence in the UAE. The attachment is imposed without notifying the debtor, and the bank must tell the court within seven days what is in the accounts. After the attachment, the claim on the merits must be filed within 8 days, and after the final judgment, enforcement must begin within 30 days — otherwise the attachment lapses.

Q: Can the debtor be banned from leaving the UAE?

Yes, if the debt is AED 10,000 or more, fixed and not subject to conditions, and there are serious grounds to fear departure. A ban can be obtained even before the lawsuit, but then the lawsuit must be filed within 8 days. The debtor may appeal the ban within 7 working days, and it is lifted if they deposit the amount or provide a bank guarantee. A company’s debt does not in itself lead to a ban on the director: a company’s representatives are restricted from travel only at the enforcement stage and after an inquiry.

Q: Does interest accrue on the debt?

For commercial debts — yes: at the rate set in the contract, or, if no rate was agreed, at the market rate but not more than 9% per year; in that case the Dubai Courts usually award 5%. Compound interest is prohibited. In loans between private individuals, an interest clause is invalid — this is covered on the “Personal Debts” page.

Q: There is no contract — only transfers and correspondence. Do I have a chance?

There is a chance, but the path is longer. Electronic correspondence is admissible evidence, and it is up to the party disputing it to disprove it; commercial obligations can be proved by any means. But a payment order requires a written debt of a fixed amount, so without a contract an ordinary lawsuit is more common; in civil transactions over AED 50,000, witnesses won’t help. Keep a full export of the chats, transfers with the payment reference and partial repayments. The strongest evidence is an acknowledgement: a reply to the demand, a signed schedule, a cheque.

Q: How long does debt recovery take?

It depends on the route. By law, the judge issues a payment order within three working days, and before that the debtor is given at least five days to pay under the demand. A cheque presented for enforcement goes straight into enforcement proceedings, without a lawsuit. In a lawsuit, the first instance usually takes 6–12 months, and an appeal adds several more. After notice of enforcement, the debtor has 7 days to pay, followed by attachment of accounts and property. With real assets, the money comes faster — so we look at the assets first and the calendar second.

Q: The debtor has left the UAE. Can anything still be recovered?

Leaving doesn’t cancel the debt, but it changes the route. A travel ban will no longer help, but assets in the UAE remain: accounts, a car, a share in a company, real estate, receivables. The debtor’s lack of a permanent residence in the UAE is one of the grounds for attachment before judgment. If the debtor is a company, it hasn’t gone anywhere, and the case proceeds in the ordinary way. A judgment can be enforced in the country the debtor moved to under that country’s rules — this route doesn’t always pay off.

Q: What is the limitation period for a debt?

Between merchants — 5 years. The general period for civil obligations, including under the new Civil Transactions Law in force since 1 June 2026, is 15 years; for a cheque it is noticeably shorter, and the cheque itself is presented to the bank within six months. A written acknowledgement of the debt is doubly useful: it is both evidence and an argument against the debtor relying on the limitation period. Waiting for the debtor to “get back on their feet” means risking the very right to recover.

If a debt is supported by documents, in the UAE it can often be recovered without full court proceedings — through a payment order or by presenting an unpaid cheque for enforcement. We choose the fast route, seek attachment of assets while they are still there and handle the case together with UAE-licensed advocates.

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3 working days
For a payment order, by law: Cheque
An enforceable instrument — no lawsuit needed: from AED 10,000
A debt for which the court may impose a travel ban: 5 years
Limitation period for a debt between merchants

Everything we do in the UAE

In short

A documented debt in the UAE can often be recovered without a full lawsuit: by law a payment order is issued within 3 working days, and an unpaid cheque is itself an enforceable instrument. For a debt from AED 10,000 the court may impose a travel ban; the limitation period between merchants is 5 years.

Checked 16 October 2026 · Violetta Absalyamova

Cost of a mistake

3 months

The time allowed to serve a payment order on the debtor: if it is not served within this period, the order lapses.

How to avoid it

How debt recovery really works in the UAE

Debt recovery is a race for assets: what matters is freezing the money before it is moved. The better the debt is supported by documents, the shorter the path to it.

Documents choose the route
If the amount is undisputed and confirmed in writing — by a contract, invoices, a reconciliation statement, correspondence — a payment order fits. If there is a dispute over quality, scope or the amount, an ordinary lawsuit is needed.
A payment order — without hearings
A payment order is issued within three working days. Before that, the debtor is sent a demand with a payment deadline of at least five days.
A cheque is already an enforceable instrument
Since 2022, insufficient funds on a cheque are not a crime. The cheque is presented directly to the execution judge, for the full amount or the balance. Closing the account and unjustified stopping of payment are criminal offences.
Attachment — before the judgment
Where there is a risk of money being moved out, the court attaches accounts and property without notifying the debtor and, with a debt of AED 10,000 or more, may impose a travel ban. The claim on the merits must follow within 8 days.

Violetta AbsalyamovaHead of Legal Practice · Business support and legal matters

Situations

What clients come to us with

Typical situations

01A counterparty company isn’t paying invoices under a supply, services or contracting agreement, and the deadlines are long past.
02You lent money to a business — a partner, a counterparty, your former company — and the repayment date has passed.
03You have an unpaid cheque — given as payment or as security — marked by the bank for insufficient funds or a closed account.
04The debtor has acknowledged the debt in letters or a reconciliation statement, but every month finds a new reason not to pay.
05There is a risk that the debtor will move assets out or leave the UAE — an attachment is needed.
06There are few documents — correspondence, transfers, partial payments — but the debt is real.

Similar, but different

01You are owed money by a private individual under a personal loan unrelated to business: there are separate rules on interest and evidence.Personal Debts
02The debtor disputes the quality, scope or amount or raises counterclaims — this is a dispute on the merits, not debt recovery.Disputes and Litigation
03A court judgment or arbitral award already exists, but there is no money — this is the enforcement stage.Enforcement of Judgments
04There are signs of fraud: forged documents, a sham company, the money was received — and the person disappeared.Criminal Cases
05A rental debt in Dubai is recovered through the Rental Dispute Settlement Centre, not in the general courts.Rental

Benefits

What you get

A route matched to your documents

We work out what proves the debt and choose the shortest path: a payment order, a cheque presented for enforcement or a lawsuit. Full proceedings for an undisputed debt mean lost months.

Attachment while the money is still there

When there is a risk of assets being moved out, we first obtain an attachment of accounts and a travel ban, and only then show our hand.

A demand that works

A demand with an exact calculation, a deadline and the right method of delivery. It both encourages payment and is required for a payment order.

Calculating interest and penalties

We add the contractual penalty and late-payment interest to the principal debt — within the limits recognised by UAE courts.

Checking the debtor in advance

We look at the licence, the company’s status, other claims and known assets. If there is nothing to recover from, we tell you before you incur costs.

Negotiating from strength

A settlement with a payment schedule, secured by cheques or an acknowledgement in court: if the debtor breaks the schedule, enforcement starts without new proceedings.

Routes

Four recovery routes — compared on the same terms

The route depends on what proves the debt and how the debtor behaves; routes are often combined — for example, an attachment and a payment order. Conditions per the UAE Civil Procedure Law, the bankruptcy law and the Dubai Courts fee schedule, checked in October 2026.

What you need

A written debt for a fixed amount

now due; electronic correspondence and promissory notes count

How long it takes

3 working days for the order

by law; before that — a demand with 5 days to pay

Asset attachment

In parallel with the order

attachment of bank funds — under the general attachment rules

Click an option to highlight it across every parameter

What you need

A written debt for a fixed amount

now due; electronic correspondence and promissory notes count

Original cheque with the bank’s mark

for the amount or the balance; to the bank within 6 months of the issue date

Any evidence

a commercial debt can be proved by any means, unless the contract requires otherwise

Debt from AED 1 million

after a written demand; from AED 10 million against entities supervised by the Central Bank or SCA

How long it takes

3 working days for the order

by law; before that — a demand with 5 days to pay

Straight to enforcement

after notification — 7 days to pay

6–12 months

first instance

Currently postponed

emergency financial crisis regime since 2026

Asset attachment

In parallel with the order

attachment of bank funds — under the general attachment rules

Before the debtor is notified

if money is being moved out; if the debtor may leave — a travel ban

Before or with the lawsuit

after an attachment — the lawsuit within 8 days

Moratorium on recovery

assets are shared among all creditors

How the debtor contests

Objection in 15 days or appeal in 30

threshold — AED 50,000; the decision on an objection is final

Before the execution judge

only the execution judge hears enforcement disputes

Appeal and cassation — 30 days each

judgments up to AED 50,000 are final; cassation — above AED 500,000

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Fee in Dubai

6%, from AED 500 to 40,000

not refunded if the order is refused

2% for enforcement

from AED 200 to AED 5,000

6%, capped at AED 20,000–40,000

commercial debts up to AED 500,000 — up to AED 5,000 on filing

—

Payment order

Does your debt qualify for a payment order?

A payment order is the short route without hearings, but only if the debt meets every condition of the law. If even one is not met, you need another route: for a cheque — straight to enforcement; if the amount is disputed — a lawsuit.

Tick what is true for you

0/5Tick the items to see whether you qualify

A cheque goes straight to enforcementArts. 143(2), 212

An unpaid cheque is an enforceable instrument in itself: it is presented to the execution judge for the full amount or the balance, without an order and without a lawsuit.

Attachment — in parallel with the orderArts. 143(3), 147(5), 149

An order does not prevent you from claiming interest, compensation and interim measures; attachment of bank funds follows the general attachment rules. Measures taken together with the order are appealed together with it.

The order must be served within 3 monthsArts. 146–147

Otherwise it lapses. The debtor challenges an order of up to AED 50,000 by an objection within 15 days of service, and the decision on it is final; a larger one by an appeal.

UAE Federal Decree-Law No. 42 of 2022 on Civil Procedure, Articles 143–149 and 212 — official text; the 2025 amendments did not change these articles. Checked on 15 October 2026.

Document review

Is the debtor promising to pay “next week”?

Send us the contract, invoices and correspondence. We will tell you whether a payment order fits and whether it is time to request an attachment.

Violetta Absalyamova

Business support and legal matters

Process

8 steps from the first conversation to the result

Every step is visible in the client portal: what’s happening now and whether we need anything from you.

Steps on your side: 1 of 8

We handle it · 4Needed from you · 1Authority · 3

We study the contract, invoices, correspondence and cheques. We check whether the amount is undisputed and the limitation period has not expired, and choose the route.
We file on the chosen route: an application for a payment order — with the court where the debtor is located or where the contract was concluded or performed; an enforcement file for a cheque; or a lawsuit. The order is issued on the documents, without hearings; if it is not served on the debtor within 3 months, it lapses. A lawsuit follows the ordinary procedure: the first instance usually takes 6–12 months. Whether to go through the conciliation centre or straight to court is decided at the consultation, case by case.

Step 1 of 8

Reviewing the debt and documents

We study the contract, invoices, correspondence and cheques. We check whether the amount is undisputed and the limitation period has not expired, and choose the route.

We handle it1–3 working days

Documents

What to gather — for your debt

The set depends on what the debt rests on: invoices under a contract, a cheque or a loan. The more written acknowledgements there are, the shorter the route.

Information

Documents

Ready

0 / 12

We have documents in other languages translated into Arabic by a licensed translator; a power of attorney executed abroad is legalised for the UAE.

Timing and budget

What makes up the budget

Debt recovery is paid for in stages: court fees, the advocate’s fee, translations. We state our fee and the budget for each stage in advance — and tell you straight away if the costs risk exceeding what can realistically be recovered.

ItemDepends onWhen

Fee for a payment order or lawsuitDepends onFor a lawsuit in Dubai — 6% of the amount, from AED 500 and no more than AED 20,000–40,000 depending on the amount; for commercial debts of up to AED 500,000 — up to AED 5,000 on filing. For a payment order — also 6%, from AED 500 to AED 40,000; if the order is refused, the fee is not refunded.WhenOn filing
Dubai conciliation centreDepends onAED 250 if the dispute goes through the centre; if a settlement is approved there, there are no other fees.WhenBefore the lawsuit
Attachment and enforcement feesDepends onEnforcing a money judgment in Dubai — 2% of the amount, from AED 200 to AED 5,000; for commercial debts of up to AED 500,000 — a fixed AED 2,000, half of which is paid by the debtor. Fees for attachment, inquiries and auctions are charged separately.WhenAs each action is taken
UAE advocate’s feeDepends onFiling and representation in court. Depends on the route, the amount and whether the debtor contests.WhenBy stage
Legal translationDepends onContracts, invoices and correspondence into Arabic — by a licensed translator.WhenBefore filing
Delivering the demandDepends onThrough a notary, by courier or another method that can later be proved in court.WhenBefore filing
Our feeDepends onAnalysis of the debt, checking the debtor, calculating the claims, strategy, coordinating the advocate and negotiations.WhenBy stage
What is recovered from the debtorDepends onThe principal debt, the contractual penalty or late-payment interest, and court fees. Legal fees are, as a rule, reimbursed only as a token amount — unless the contract provides otherwise.WhenWith the judgment or order

Getting it right

Common mistakes — and how to avoid them

Click a card to see how to do it right · 0 of 7 open

01 What people often do
Accepting verbal promises — “definitely next month” — instead of a document.
02 What people often do
Sending a demand without checking where the debtor’s assets are.
03 What people often do
Filing a full lawsuit for an undisputed debt.
04 What people often do
Threatening the debtor with the police over an unpaid invoice.
05 What people often do
Handing the debt over to collectors who “know how to apply pressure”.
06 What people often do
Waiting for years for the debtor to “come to their senses”.
07 What people often do
Keeping only a copy of the cheque and screenshots of the correspondence.

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So the next debt doesn’t build up

Debts grow where the contract has no security, payment schedule or penalty and invoices are issued without oversight. With the “Business Counsel” subscription, a lawyer reviews contracts before signing and steps in at the first late payment, not six months later.

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FAQ

Expert answers

Violetta Absalyamova — Business support and legal matters

It is a simplified procedure for monetary debts of a fixed amount, confirmed in writing or electronically, that have fallen due; a debt under a promissory note is recovered the same way. The creditor sends a demand with a deadline of at least five days, then files an application, and the judge decides on the documents, without hearings — by law within three working days. The order must be served on the debtor within three months, otherwise it lapses. The debtor challenges an order for up to AED 50,000 by an objection within 15 days, and a larger one by an appeal within 30 days. Cheques don’t go this way — they are enforced directly. It doesn’t fit if the debtor disputes quality, scope or set-off.