The Bankruptcy Act also introduced three main procedures for a company in financial difficulty: a protective composition; a restructuring programme; and insolvency and liquidation. The impact of bankruptcy law on the credit market in the United Arab Emirates is discussed in this chapter, in particular with regard to the rights of secured creditors to enforce their security rights during bankruptcy proceedings. The Bankruptcy Act has supported companies in economic difficulty by providing for various ways to maintain them as companies and avoid liquidation. However, as my colleagues above recommend, it is important that you contact your bank to explain your situation and try to develop a payment plan that takes into account your current situation. The new federal insolvency law also decriminalizes debtors` financial obligations and proposes a three-year plan to help them repay the loan amount. Here`s everything you need to know about Dubai`s new debt law and how it will help UAE residents who are over-indebted. Next, you need to discuss the terms of debt settlement with the bank. If you`re really serious about settling unpaid bills, banks usually offer waivers of your repayment amount. Discuss the best refund amount that`s right for you. Creditors or collection agencies will try to contact you by any means.

They might start tracking you around your home and office to collect the payment. Depending on how you interact with them, they will try to convince you in a friendly or harsh way. The best way to avoid this situation is to discuss the terms with the bank or financial institution in question. 10.1 What are the licensing and eligibility requirements in your jurisdiction for lenders of a business in your jurisdiction, if any? Are these licensing and admission requirements different for a “foreign” lender (i.e., Unless expressly authorized, shareholder approval should be sought. For onshore limited liability companies (“LLCs”) that had previously avoided strict regulation, directors should be aware that CCL 2015 now includes an article (Section 104) stating that the provisions contained therein, which apply to PJSC and private public companies (“PrJSC”), now also apply to an LLC, unless otherwise specified. On April 29, 2016, the Ministry of Economy of the United Arab Emirates issued Ministerial Resolution No. 272 of 2016 (the “Resolution”). The resolution aims to clarify which provisions concerning PSPJS also apply to LLCs. Although the resolution clarified many provisions of the CCA, an example of how LLC executives can now be held liable to the LLC and/or its shareholders for “mismanagement” (which need not necessarily be gross errors), some provisions are not taken into account, as if Section 153, which prohibits the granting of loans to directors and their relatives, also applies to LLCs. Hello, thank you very much for this excellent article.

It seems that all your information concerns the debtor who remains at The Water. What about those who have been laid off and cancelled visas and have loans? Can you please provide information on how this new law can help those who live outside the country and need to look for work to pay off their debts? Thank you very much! 8.1 How does insolvency proceedings against a company affect a lender`s ability to enforce its rights as a secured party through the guarantee? The Bankruptcy Act applies to all commercial companies (with the exception of companies that are not subject to the special provisions governing bankruptcy or subject to the provisions of Federal Law 8 of 2004 on Financial Free Zones), traders/merchants and civil partnerships (established in accordance with the Civil Code). Individuals remain outside the scope of the Insolvency Act. You will also need to obtain a confirmation letter from law enforcement authorities to resolve any case registered against you. As soon as the bank notifies the police, they will dismiss the complaint against you. However, insist that a written statement from the police department confirm this. Sometimes you may need to contact the embassy and follow certain guidelines to get a police certificate. If you do not make progress at the bank after 30 days, you can contact the Consumer Protection Department of the Central Bank of the United Arab Emirates, although there is no guarantee that they will be able to help you after the check is submitted.