FAQ: How long does it take for a debt to be considered "unrecoverable" in Dubai?
In Dubai, the timeline for a debt to be considered "unrecoverable" can vary depending on several factors, including the nature of the debt, the efforts made by creditors to collect the debt, and the legal framework governing debt collection. While there is no specific timeframe after which a debt is automatically deemed unrecoverable, certain guidelines and practices can provide insights into this process: Statute of Limitations : Dubai, like many jurisdictions, has a statute of limitations that determines the maximum period within which creditors can pursue legal action to recover debts. In the UAE, the statute of limitations for debt collection is generally 15 years for civil claims. Once this period elapses without any legal action taken by creditors, the debt may be considered unrecoverable through formal legal channels. Debt Write-Off Policies : Creditors and financial institutions in Dubai may have internal policies regarding debt write-offs. These policies outline cr...