Debt Collection in Jordan

Debt Collection in Jordanian Law: Between Flexibility and Challenges

Timely repayment of debts is a testament to commitment and honor. However, in practice, disputes often arise between individuals and companies regarding outstanding debts. Delayed or avoided repayments can trigger a series of financial difficulties, affecting the creditor’s ability to meet their own financial obligations to others. Consequently, there is a growing need for effective legal mechanisms to recover debts, leading to the emergence of specialized law firms in this field in Jordan.
Debt Collection Offices: Their Role and Operating Mechanisms
Debt collection offices function as specialized legal entities focused on the settlement and collection of various types of debts, whether due or overdue. Creditors turn to these offices when they face difficulties in recovering their debts independently. Debt collection attorneys represent creditors, providing necessary legal advice and taking appropriate legal actions to recover the owed amounts. In this context, our firm represents creditors in recovering their debts from defaulting debtors, whether individuals or companies, through a team of specialized attorneys with the experience and knowledge needed to achieve the best possible results for our clients.
The Legal Framework for Debt Collection in Jordan
There is no specific law exclusively governing debt collection in Jordan; instead, it is subject to various laws and regulations. If the debt is between ordinary individuals, it falls under the provisions of civil law. However, if it involves merchants, it is regulated by the Commercial Law. In the case of bank debts, the Banking Law applies. It is also worth noting that purchasing debts is not allowed in Jordan, which limits the collection process to the original creditors or their legal representatives.
Means of Proving Debt in Jordanian Law
The burden of proving the debt rests with the creditor, and the means of proof vary between written documents, witness testimonies, and circumstantial evidence. An official document, such as a notarized bond, is the strongest form of evidence, followed by an ordinary bond that includes a signature, stamp, or fingerprint. Witness testimonies may also be used in certain cases where written evidence is unavailable.
Procedures for Enforcing a Debt Bond
Once an enforceable bond is obtained, the creditor can request its enforcement from the Execution Department, where the debtor is notified to pay within a specified period. If the debtor fails to comply, other enforcement actions, such as seizing the debtor’s assets or imposing a travel ban, may be taken.
Statute of Limitations on Debts: A Critical Point
Debt is subject to a statute of limitations under Jordanian law, meaning it cannot be claimed after a certain period has elapsed. The limitation period varies depending on the type of debt. For debts documented by a paper, the limitation period is fifteen years, while it may be shorter in other cases.
Debt Collection Offices in Jordan: Their Services and Specializations
Debt collection offices are widespread in Jordan and offer a variety of services, including the collection of commercial, consumer, bank, and insurance company debts. These offices are distinguished by having attorneys specialized in this field, ensuring the provision of high-quality legal services.
Challenges Facing Debt Collection in Jordan
Despite the flexible legal framework governing debt collection in Jordan, several challenges remain. The most notable of these challenges are the lengthy and costly legal procedures, as well as the difficulty in accessing certain financial information about debtors.
Some law firms and legal consulting companies are distinguished by their extensive experience and specialization in the field of debt collection. Our legal team includes a select group of experienced attorneys who handle all necessary legal procedures for efficient and effective debt collection, from amicable negotiations to litigation before the competent courts. The debt collection department at our firm offers comprehensive and integrated services to our valued clients, including legal consultations, contract and agreement preparation, and monitoring the enforcement of judicial rulings. At [Company Name], we are committed to achieving the best outcomes for our clients and safeguarding their financial interests and rights.
Conclusion
Debt collection is a vital process for the Jordanian economy, contributing to the stability of financial transactions and enhancing trust between the involved parties. With the evolution of legislation and the diversification of services offered by debt collection offices, it is expected that this process will see further development and efficiency in the future.