Document background
The Debt Collection Letter of Demand is a critical document in the UAE's debt recovery process, used when formal payment collection is required from a debtor who has failed to meet their financial obligations. This document is essential under UAE law as it establishes a formal record of payment demand and serves as a final warning before legal action. It must be drafted in accordance with UAE Federal Law No. 5 of 1985 (Civil Code), Commercial Transactions Law, and other relevant legislation, while respecting Sharia law principles. The letter typically includes specific details about the debt, payment terms, and consequences of non-payment, serving both commercial and civil applications. It's commonly used by businesses, financial institutions, and individuals seeking to recover outstanding payments, and often forms part of the evidence in subsequent legal proceedings if payment is not received.
