The new insolvency law no. 19 of 2019 and its benefit for debtors

Hello,

Under the new Insolvency law, effective January 2020, debtors will be able to file a Court request for restructuring their debts and settlement of their financial obligations, subject to special limitations and requirements.

This will allow debtors to request a settlement plan, which takes into consideration their financial status, work and apply for new visas.

Kind regards,

Maha Bin Hendi Law Firm

Dear Questioner,

The UAE Insolvency Law No. 19 of 2019 was published on 29 August 2019 and came into effect recently on 28 November 2019.

The new effective law will help natural persons with financial difficulties to settle their debts through expert assistance through court procedures.

Nevertheless, if the debtor was still unable to pay his dues within 50 consecutive working days, he/she will have to apply for liquidation proceedings which are done by a trustee appointed by the court.

Liquidation proceedings will apply restrictions on the debtors regarding the use of his/her money and assets during the process.

Further restrictions will apply after finalizing the process in regards to entering into new obligations or obtaining new loans.

Best regards.