Commercial debt collection is one of the most critical legal challenges faced by companies and business owners in Kuwait. Kuwaiti law provides clear legal mechanisms that enable creditors to recover their commercial debts in an organized and legally secure manner. This article explores the steps of debt recovery, from amicable claims to compulsory execution.
First: What Is a Commercial Debt?
A commercial debt is any financial obligation arising from a commercial transaction, such as:
- Unpaid invoices.
- Breach of commercial contracts.
- Bounced cheques or promissory notes.
- Outstanding payments for services or goods. These debts are governed by the Kuwaiti Commercial Law and the Civil and Commercial Procedures Law.
Second: Amicable Settlement (Legal Notice)
Before resorting to court, it is advised to start with an amicable solution by:
- Sending a formal legal notice.
- Specifying the debt amount and maturity date.
- Granting the debtor a legal grace period for payment.
Third: Collecting Evidence and Documentation
If the debtor fails to respond, a complete legal file must be prepared, including:
- Signed contracts.
- Invoices or purchase orders.
- Receipts, correspondence, and cheques.
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If amicable attempts fail, the creditor may:
- File a claim before the competent commercial court.
- Claim the debt value plus any applicable interest.
- Request compensation for delays.
Fifth: Urgent Measures and Orders for Payment
Kuwaiti law allows for expedited procedures, such as:
- Obtaining an order for payment.
- Requesting precautionary attachment (provisional seizure) of the debtor’s assets.
- Imposing travel bans in certain cases.
Sixth: Execution of Judgment
Once a final judgment is issued, enforcement measures include:
- Seizure of bank accounts.
- Attachment of real estate or movable assets.
- Public auction of seized property.
Seventh: The Role of a Specialized Lawyer
Hiring a specialized commercial lawyer ensures:
- Choosing the most effective legal route.
- Accelerating the recovery process.
- Avoiding procedural errors.
Conclusion
Commercial debt collection in Kuwait is a structured process designed to protect financial rights. Following the correct legal steps ensures efficient recovery with minimal risk.
