Avoiding cases by the bank for defaulting on loan payments - Q&A - Legal Advice Middle East

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Q: I have 5 cards and 2 cash on card loan. I can't pay the minimum amount because of a shortage of funds. How can I come out of this? A: Discontinue paying the instalments and reach out to the bank for settlement. This would not financially strain you and also begin negotiation talks with the bank…

Hari Wadhwana · Accepted Answer

Dear Sir/ Madam, Thank you for reaching out to me on this. As I understand you have outstanding dues and if you stop paying the banks for more than 3 months, there is a possibility that they may institute a police case and then a civil case against you. They can file a police case by bouncing your security cheque (if provided). Once they bounce the cheque, they can proceed with the filing of police case which would result in an automatic travel ban and a potential arrest warrant. Once your police case is filed, you can reach out to a legal professional to clear the case so you can escape from any imprisonment sentence. Once you clear your police case, you will be in a better position to negotiate and close your liabilities as the bank will not have the leverage of filing another police case against you. Very rarely does the bank file a civil case since the cost and time involved in it is not financially feasible. My preliminary advice would be to discontinue paying the instalments and reach out to the bank for settlement. This would not financially strain you and also begin negotiation talks with the bank. Kindly answer my following questions for better advise: Firstly, can you please tell me how many banks/ financial institutions you have your loan/card dues with? Secondly, can you advise whether you have provided them with any security cheques (blank or with amount)? Lastly, in which Emirate did you take these loans/ cards from? I trust you will find my response adequate. You can reach out to me on phone or email for further assistance and clarification. Regards, Hari Wadhwana

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