Questions & Answers
Failure to pay a personal loan and consequences of the civil case
I am an engineer and I was working in a construction company in Dubai where I am based. I have issued a cheque of AED 150,000 for a personal loan with a bank.
Due to the lack of work and the company terminated me for 2 months, I am suffering from my personal loan and the bank filed a case now.
5 months back, they filed a case which I don't know for a travel ban and I was in jailed 4 and half days. After that, I paid AED 10000 to Dubai court after they released me.
I heard that civil cases now are not punishable again by jail sentence like before. Is it true?
Dear Questioner,
In case the bank files a civil case against you, this will not be punishable by jail but following the execution, there is a possibility for a travel ban to be imposed against you.
I suggest you reach a settlement with the bank and try to pay the difference amount in monthly instalments, otherwise you may face other problems in the UAE.
Best regards,
Raluca Gatina
Hello,
No there will not be any jail. For more information, please contact us dr,amira@advoamira.ae or 00971507851227
Dear Questioner,
Good afternoon.
Thanks for contacting online.
Since the criminal case is cleared by you by paying the fine amount, the bank may open a civil case against you for recovery.
Normally, the travel ban and blacklisting comes on a later stage of execution if you didn't pay despite the procedures of execution.
But in civil cases, there also is an option to impose a travel ban to the defaulter at the initial stage of the case. Hope this is clear for you.
Please feel free to contact me at 0556635526 or WhatsApp me at 0508575526 if you need any further explanation and clarification.
Regards,
Anitha Rajeev
