Questions & Answers
Questions & Answers
3 available 3 • View allWhat legal action can the bank take in the UAE in case of loan default due to job loss?

0
Q: My friend has a loan of AED 300,000 with a security cheque of 500k and lost his job 12 months ago. He managed to pay for the first 6 months but has missed payments for the last 5 months, amounting to 50k++, except for AED 1,000 paid last month.
Today, the bank gave him a 13-day notice to pay at least one installment or face legal action and possible detention. He is still unemployed and unable to continue regular payments, even if he pays this month.
We need legal advice on:
1) What legal action can the bank take in the UAE in case of loan default due to job loss?
2) Whether detention is possible, especially if a security cheque was involved;
3) Available legal protections, such as restructuring, mediation, or bankruptcy;
4) How to avoid legal escalation while he is unemployed.
Please advise urgently on possible options and next steps to avoid arrest or further consequences.
Thank you.


Jul 7, 2025
103
What to do if the bank filed case on me using security cheques and executed travel ban?




0
Q: The bank filed a case against me using security cheques and executed a travel ban from Dubai Courts.





+5
Apr 15, 2025
223
Will I get arrested in GCC countries if I left the UAE with an unpaid loan and credit card?
3
Q: Hello Sir
I have an unpaid bank loan and credit card in the UAE since I lost my job last 2014. Now I have a plan to go to Kuwait to try another opportunity.
Will I get arrested in immigration if I enter one of the GCC countries?
Hopefully, you can help and advise me.
Thanks.

Mar 27, 2023
965
Legal blog
3 available 3 • View allThe Consequences of Job Loss and Defaulting on Financial Liabilities 26
The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.
Feb 12, 2019
19095
UAE Travel Ban: What You Need to Know in 2025 167
The UAE travel ban may be imposed on a person on various grounds, for instance, as the result of criminal offences, unpaid loans, breach of immigration laws or family matters. Implications of such a ban can be financially severe and daunting for the affected person. This article aims to give readers a clear understanding of what is the UAE travel ban, what are the grounds and procedures for its imposition and removal, how to check if the person is banned from travelling and other related topics.
May 30, 2025
139429
Bounced Cheques in the UAE: What You Need to Know in 2024 294
In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.
Oct 15, 2024
225352
Laws & Regulations
3 available 3 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148832
Federal Decree-Law No. (50) of 2022 Issuing the Commercial Transactions Law 1
The provisions of this Federal Decree-Law No. (50) of 2022 Issuing the Commercial Transactions Law, known as the "New Commercial Code" governs commercial transactions in the United Arab Emirates. The New Commercial Code repeals the previous UAE Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law.
Oct 3, 2022
598
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.
Sep 27, 2020
3633

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The employers are delaying my experience letter intentionally. What can I do? 0
Dear Respected Lawyers,
I need advice.
I have worked in a company for 6 years. After 4 years of leaving that company, I need a detailed experience letter mentioning my position at that time, with duties.
As per the labor law, can I get it or not, or how?
I have to submit this letter to the Ministry of Labor in the UAE to prove that my duties are matching with my visa.
The employers are not responding to my emails or even calls; they are purposefully delaying it so that I cannot get my new job.
Aug 13, 2025
11
Can my employer send me back to my home country if I resign after one year? 0
Hello,
I want to know if my employer has the right to send me back to my home country since they hired me directly from there, if I resign after one year with them.
Jul 17, 2025
82
How can I recover money from a colleague who blocked me and refuses to repay? 0
Hello,
I am seeking your legal advice regarding a matter involving a former colleague who borrowed money from me for personal reasons.
Despite multiple follow-ups, he has now blocked all communication and is refusing to repay the amount. I have clear proof of the transaction through bank transfer records, WhatsApp conversations, and a copy of his Emirates ID.
This individual has a history of borrowing money from others and not repaying, and even told me to "go to the police," showing no intention of resolving the issue.
Please advise on the best legal course of action to recover the amount and proceed with a formal complaint if necessary.
Looking forward to your guidance!
Jul 18, 2025
94
I recieved an eviction notice from the Abu Dhabi Enforcement Court. How can I delay eviction? 0
Hello,
I received an eviction notice from the Abu Dhabi Enforcement Court to evict my current apartment for non-payment of rent (Due to loss of job).
I wanted to cooperate, so I went personally to the Abu Dhabi Enforcement Office one day after I received the notice by SMS to arrange the eviction date to be 25 July, as I had a friend I could stay with temporarily until I sorted out the situation.
Now my friend is traveling till 16 August, and I have literally nowhere else to go.
Is there a way to submit a petition to reschedule the eviction till 16 August?
I need help on this ASAP, as the enforcement is in 4 days. If no solution is found, I will be forced onto the street in temperatures of +40 degrees, and no way to go
Jul 21, 2025
79
Can the real estate agent increase the rent every year? 0
Hi
Can the real estate agent increase the rent every year?
Last year, we increased the rent by 5% based on RERA's index, and this year, the agent wants to increase the rent significantly.
Where does it say they need to increase the rent every year?
Many thanks in advance.
M
Jul 17, 2025
65

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I sold my car to a car agency and they claim that the car is dead to deduct an amount. What can I do? 0
I sold my vehicle to a known Buy and Sell agency in Abu Dhabi last 25 July 2025. They inspected the vehicle meticulously and quoted AED 12,000 Net.
A vehicle sale-purchase agreement was presented, revealing that they will cut AED 600 for a convenience fee. So my Net pay will be 11,400. I agreed and signed all in good faith.
I was instructed to wait until their PRO call and do the transfer of title at the vehicle registry. Since it was Friday, the transfer was not completed, and I have to wait till Monday.
The next day, Saturday (17:30-18:00), they sent a message that the car is dead, sent it via recovery to Dubai for another inspection. They told me that the price needs to be renegotiated; they gave me a figure of AED 9000.
They sent me a new agreement with the figure of 9000, but I did not sign it and just ignored it. Transfer finished, then they sent 11,400 to my account. Now they want the alleged excess back.
Legally, do I owe them? Or I am being harassed as phone calls and emails are non-stop.
Aug 12, 2025
13
Can my employer send me back to my home country if I resign after one year? 0
Hello,
I want to know if my employer has the right to send me back to my home country since they hired me directly from there, if I resign after one year with them.
Jul 17, 2025
82
What can our company do if the client cancelled the order and threatened to file a case for the cancellation fee? 0
Salaam Alekum
We had a client from the US who had an agreement with us for 19-20 big buses for 20 days of transport service in KSA. They cancelled 12 buses and then the entire order 2-3 days before the event.
They paid around 25% of the total cost initially agreed on 50% before the event.
We have been keeping those buses on hold for more than 1 month, not taking other bookings, and facing losses.
My company is charging them 50% cancellation fees because of last-minute cancellation, but now the client is threatening us to take legal action and doing PR advisement by asking for the deposit they paid.
Our policy is refund will be issued within 45 days after internal investigation, but the client is threatening us again.
We don't give a refund if the cancellation is done by the client and mentioned on the invoice as well. In this case, we are considering a solution which takes time.
What can we do in this situation, as we have already faced lots of loss?
Jul 22, 2025
81
How can I recover money from a colleague who blocked me and refuses to repay? 0
Hello,
I am seeking your legal advice regarding a matter involving a former colleague who borrowed money from me for personal reasons.
Despite multiple follow-ups, he has now blocked all communication and is refusing to repay the amount. I have clear proof of the transaction through bank transfer records, WhatsApp conversations, and a copy of his Emirates ID.
This individual has a history of borrowing money from others and not repaying, and even told me to "go to the police," showing no intention of resolving the issue.
Please advise on the best legal course of action to recover the amount and proceed with a formal complaint if necessary.
Looking forward to your guidance!
Jul 18, 2025
94
Are there any chances to get arrested in my home country for an unpaid loan in the UAE? 0
I took out a loan with [----] in the UAE in 2018 and made initial payments for about five months. Unfortunately, due to family issues, I had to return to Pakistan and have not been able to return since.
I have been unemployed, which has hindered my ability to make payments consistently. Although I have been making payments for the past three years, the high conversion rates have made it difficult to keep up with the amounts due.
I genuinely want to fulfill my obligations, but inflation has further complicated my financial situation. Additionally, transferring money from Pakistan to the UAE for deposits is also a challenge.
I have been consistently paying between AED 500 and 1000 for a long time; however, any delay or irregularity in my payments results in threats of police action against me.
My inquiry is whether there is a chance of being arrested in Pakistan, and what potential repercussions I might encounter if I cease making payments.
Jul 22, 2025
270

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The employers are delaying my experience letter intentionally. What can I do? 0
Dear Respected Lawyers,
I need advice.
I have worked in a company for 6 years. After 4 years of leaving that company, I need a detailed experience letter mentioning my position at that time, with duties.
As per the labor law, can I get it or not, or how?
I have to submit this letter to the Ministry of Labor in the UAE to prove that my duties are matching with my visa.
The employers are not responding to my emails or even calls; they are purposefully delaying it so that I cannot get my new job.
Aug 13, 2025
11
What are the rules of renewal after receiving legal notice for the remaining period after deadline? 0
I received a legal notice in November 2024. My renewal is due on Sep 1, 2025. At the moment, my rent is 36K. Market price is 42k - 52K.
Meanwhile, the apartment is sold and the new owner, through the old agent, is asking us to leave or pay for the following 3 months a 54k pro rate (which would mean 54k/4).
Shouldn't the increase be limited to what the RERA calculator is allowing, just 10%?
Aug 12, 2025
20
I have received a final judgment in my favor and the employer is offering to settle. What to do? 0
Dear Team,
I have received a final judgment in my favor for 5 months' salary, and I’ve already initiated execution through Al Adheed Center.
Now, my employer is requesting to settle the matter outside the court and promises to pay the full amount within 45 days. However, due to past false promises and non-payment, I am hesitant to trust him.
Could you please advise:
1. Is it safer to continue with the execution process?
2. If I choose to accept the settlement, how can I legally document the payment schedule to ensure enforcement if he defaults?
3. Can this settlement agreement be filed or endorsed through Al Adheed or the court to keep legal pressure?
Looking forward to your guidance.
Aug 12, 2025
16
Can my employer send me back to my home country if I resign after one year? 0
Hello,
I want to know if my employer has the right to send me back to my home country since they hired me directly from there, if I resign after one year with them.
Jul 17, 2025
82
What can our company do if the client cancelled the order and threatened to file a case for the cancellation fee? 0
Salaam Alekum
We had a client from the US who had an agreement with us for 19-20 big buses for 20 days of transport service in KSA. They cancelled 12 buses and then the entire order 2-3 days before the event.
They paid around 25% of the total cost initially agreed on 50% before the event.
We have been keeping those buses on hold for more than 1 month, not taking other bookings, and facing losses.
My company is charging them 50% cancellation fees because of last-minute cancellation, but now the client is threatening us to take legal action and doing PR advisement by asking for the deposit they paid.
Our policy is refund will be issued within 45 days after internal investigation, but the client is threatening us again.
We don't give a refund if the cancellation is done by the client and mentioned on the invoice as well. In this case, we are considering a solution which takes time.
What can we do in this situation, as we have already faced lots of loss?
Jul 22, 2025
81

Premium
Other answers by
What are the rules of renewal after receiving legal notice for the remaining period after deadline? 0
I received a legal notice in November 2024. My renewal is due on Sep 1, 2025. At the moment, my rent is 36K. Market price is 42k - 52K.
Meanwhile, the apartment is sold and the new owner, through the old agent, is asking us to leave or pay for the following 3 months a 54k pro rate (which would mean 54k/4).
Shouldn't the increase be limited to what the RERA calculator is allowing, just 10%?
Aug 12, 2025
20
I have received a final judgment in my favor and the employer is offering to settle. What to do? 0
Dear Team,
I have received a final judgment in my favor for 5 months' salary, and I’ve already initiated execution through Al Adheed Center.
Now, my employer is requesting to settle the matter outside the court and promises to pay the full amount within 45 days. However, due to past false promises and non-payment, I am hesitant to trust him.
Could you please advise:
1. Is it safer to continue with the execution process?
2. If I choose to accept the settlement, how can I legally document the payment schedule to ensure enforcement if he defaults?
3. Can this settlement agreement be filed or endorsed through Al Adheed or the court to keep legal pressure?
Looking forward to your guidance.
Aug 12, 2025
16
What can our company do if the client cancelled the order and threatened to file a case for the cancellation fee? 0
Salaam Alekum
We had a client from the US who had an agreement with us for 19-20 big buses for 20 days of transport service in KSA. They cancelled 12 buses and then the entire order 2-3 days before the event.
They paid around 25% of the total cost initially agreed on 50% before the event.
We have been keeping those buses on hold for more than 1 month, not taking other bookings, and facing losses.
My company is charging them 50% cancellation fees because of last-minute cancellation, but now the client is threatening us to take legal action and doing PR advisement by asking for the deposit they paid.
Our policy is refund will be issued within 45 days after internal investigation, but the client is threatening us again.
We don't give a refund if the cancellation is done by the client and mentioned on the invoice as well. In this case, we are considering a solution which takes time.
What can we do in this situation, as we have already faced lots of loss?
Jul 22, 2025
81
How can I recover money from a colleague who blocked me and refuses to repay? 0
Hello,
I am seeking your legal advice regarding a matter involving a former colleague who borrowed money from me for personal reasons.
Despite multiple follow-ups, he has now blocked all communication and is refusing to repay the amount. I have clear proof of the transaction through bank transfer records, WhatsApp conversations, and a copy of his Emirates ID.
This individual has a history of borrowing money from others and not repaying, and even told me to "go to the police," showing no intention of resolving the issue.
Please advise on the best legal course of action to recover the amount and proceed with a formal complaint if necessary.
Looking forward to your guidance!
Jul 18, 2025
94
How to claim an amount transferred by mistake to a company which is not responding or returning it back? 0
An "A" individual / Company by mistake transfers/deposits some funds to another "B" company.
"B" company, despite certain follow-up efforts with "A" Company to recall or claim back the wrong payment, remained unresponsive, and “A" company could not track the depositor information.
In such cases, what is the time frame within which "A" Company is liable to retain in suspense?
Can "A" company deny the claims of "B" company in the future, as it was written off by "A" company after a few months of tracking.
Jul 17, 2025
71

Premium
Other answers by
The employers are delaying my experience letter intentionally. What can I do? 0
Dear Respected Lawyers,
I need advice.
I have worked in a company for 6 years. After 4 years of leaving that company, I need a detailed experience letter mentioning my position at that time, with duties.
As per the labor law, can I get it or not, or how?
I have to submit this letter to the Ministry of Labor in the UAE to prove that my duties are matching with my visa.
The employers are not responding to my emails or even calls; they are purposefully delaying it so that I cannot get my new job.
Aug 13, 2025
11
I sold my car to a car agency and they claim that the car is dead to deduct an amount. What can I do? 0
I sold my vehicle to a known Buy and Sell agency in Abu Dhabi last 25 July 2025. They inspected the vehicle meticulously and quoted AED 12,000 Net.
A vehicle sale-purchase agreement was presented, revealing that they will cut AED 600 for a convenience fee. So my Net pay will be 11,400. I agreed and signed all in good faith.
I was instructed to wait until their PRO call and do the transfer of title at the vehicle registry. Since it was Friday, the transfer was not completed, and I have to wait till Monday.
The next day, Saturday (17:30-18:00), they sent a message that the car is dead, sent it via recovery to Dubai for another inspection. They told me that the price needs to be renegotiated; they gave me a figure of AED 9000.
They sent me a new agreement with the figure of 9000, but I did not sign it and just ignored it. Transfer finished, then they sent 11,400 to my account. Now they want the alleged excess back.
Legally, do I owe them? Or I am being harassed as phone calls and emails are non-stop.
Aug 12, 2025
13
Will the execution procedures start automatically to evict the tenant if the landlord does not request it? 0
Hello,
I have received the execution case for RDC Dubai (-----), and this is the case no. if you want to review. I asked a lot of lawyers, and they were unable to reply.
I want to know, if I do not vacate the property within 7 days, will the court officer come immediately for forced eviction, or does it take time?
However, I have discussed with the owner, and they said they will pause it.
Please let me know.
Jul 16, 2025
82
Can my employer send me back to my home country if I resign after one year? 0
Hello,
I want to know if my employer has the right to send me back to my home country since they hired me directly from there, if I resign after one year with them.
Jul 17, 2025
82
How can I recover money from a colleague who blocked me and refuses to repay? 0
Hello,
I am seeking your legal advice regarding a matter involving a former colleague who borrowed money from me for personal reasons.
Despite multiple follow-ups, he has now blocked all communication and is refusing to repay the amount. I have clear proof of the transaction through bank transfer records, WhatsApp conversations, and a copy of his Emirates ID.
This individual has a history of borrowing money from others and not repaying, and even told me to "go to the police," showing no intention of resolving the issue.
Please advise on the best legal course of action to recover the amount and proceed with a formal complaint if necessary.
Looking forward to your guidance!
Jul 18, 2025
94
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