Q: Dear Madam, I got terminated from my company & I have a bank loan around AED 75000. What do I have to do the next step? Please advise me (ASAP) Best regards

Q: I have a personal loan with a local bank. I lost my job and defaulted in the last few months. The current outstanding is AED 179,000. They presented a cheque of AED 472k, paid the fine and came out a few months before. Now, they are calling about a civil case if not paid within this month. Please advise

Q: Dear Sir, I am an Indian national, and I defaulted on a personal loan & credit card payments. I lost my Job and I didn't pay my EMI and credit card payments. I am seeking help from you, could you help me with this? I am not a willful defaulter. Now, I am In my home country.  

Q: I had a loan from a bank for AED 140000. I lost my job in Dubai and I had to return to my home country. Now, the recovery is calling me and my family. I have no money because I had a loss in my business. How can I settle the money? If I go back to Dubai, will there be any imprisonment?

Q: I have a credit card outstanding of 69k (including interest and other charges) and was not able to pay since I lost my job. They filed a case in Dubai. How to handle this? Can they file the same case in other emirates also? Please let me your charges also for consulting.

Q: Hello Sir, I have a personal loan with one bank in the UAE with an outstanding amount of 250000. The total loan amount was 275000. I had paid off 5 instalments. I want to know, can I do a settlement with the bank in case I lost my job?

Q: Dear Sir/Madam, I have noticed a cheque bounce case filed against my credit card. I have informed them before that I will proceed with an easy EMI scheme through instalments. However, they deposited the cheque; the amount showing is AED 50,000. Can you please advise how to proceed further? Can I go to the police station directly? How much is the fine that I have to pay?

Q: Dear sir/madam, I got a personal loan of 230,000, and paid 35 installments out of 48 installments about (209,000 DHS) but failed to pay further due to the loss of my job. The bank deposited the guarantee check and filed a criminal case. The penalty was paid and the criminal case was released. Now the bank is asking for a settlement of 105,000 which includes accumulated interests and fines otherwise threatens to file a civil case. What is the amount I am liable to pay by law if they file a civil case? What is the best solution?

Q: I lost my job during the pandemic and had to leave the UAE. After one and a half years, when I returned to the UAE, the bank's collection department had filed a case against me. My original loan amount was only 91,000 AED, but with profit, it increased to 134,000 AED. I have been paying regularly, and now I have only 59,000 AED left. I asked the collection department to offer me a reasonable repayment solution, suggesting a settlement of between 20,000 and 25,000 AED. However, they demanded a one-time payment of 50,000 AED, which I cannot afford due to a lack of funds. Now, they are threatening to file another case against me with a travel ban. I would like to know if the collection department can file a case against me and if the judge would help provide a reasonable payment solution. I have repeatedly asked the bank for a more reasonable settlement amount, but they refused and insisted on filing the case.

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.

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.