Commercial Debt Collection in Kuwait: A Step-by-Step Guide

Commercial debt collection is one of the most prominent challenges facing companies and traders in Kuwait, especially given credit transactions and deferred contracts. The Kuwaiti legislator has organized clear mechanisms for debt collection that balance protecting the creditor’s rights with ensuring no abuse against the debtor. In this article, we review the practical and legal steps for collecting commercial debts in Kuwait, from amicable claims to forced execution.

First: What is Commercial Debt?

A commercial debt is any financial obligation arising from a commercial transaction, such as:

• Sales and purchase contracts between traders.
• Supply and contracting agreements.
• Promissory notes and commercial checks.
• Invoices due for services or goods. This type of debt is governed by the provisions of the Kuwaiti Commercial Law and the Law of Procedures.

Second: Step One – Amicable Debt Claim

Before resorting to the judiciary, it is always advised to start with an amicable solution, through:

• Sending a formal legal notice or a written claim.
• Specifying the debt value and the maturity date.
• Granting the debtor a legal grace period for payment. In many cases, this step succeeds in collecting the debt without judicial costs or disputes.

Third: Gathering Documents and Evidence

In case of non-response, a comprehensive legal file must be prepared, including:

• Signed contracts.
• Invoices or purchase orders.
• Receipts or correspondence.
• Checks or bonds, if any. The strength of the documentation directly contributes to the speed of the court’s decision.

Fourth: Filing a Commercial Debt Collection Lawsuit

If amicable attempts fail, the judiciary is resorted to by:

• Filing a lawsuit before the competent court.
• Claiming the debt value and interests, if any.
• Requesting compensation for delay when necessary. Commercial lawsuits in Kuwait are characterized by relative speed compared to civil lawsuits.

Fifth: Orders on Petitions and Summary Proceedings

In certain cases, the law allows:

• Issuing a Payment Order.
• Precautionary attachment on the debtor’s funds.
• Travel bans in specific cases. This is to protect the creditor’s rights and prevent the smuggling of funds.

Sixth: Execution of the Judicial Ruling

After the final judgment is issued, the execution phase begins, including:

• Seizing bank accounts.
• Attachment of movable or real estate property.
• Taking auction sale procedures. A debt is not legally considered collected until the execution is complete.

Seventh: The Role of a Lawyer in Commercial Debt Collection

Seeking the assistance of a specialized lawyer ensures:

• Choosing the most appropriate legal procedure.
• Accelerating the collection process.
• Avoiding formal errors.
• Fully protecting the creditor’s rights.

Conclusion Commercial debt collection in Kuwait is a gradual legal process. The more correct steps are followed from the beginning, the greater the chances of recovering the right with minimal time and cost.