Questions & Answers
Settlement of credit card debts with the bank to avoid imprisonment
I have four credit cards which I am using last 5- 6 years.
My financial situation has currently changed dramatically, and I am not in a position to repay the minimum payments.
Until the last month, all the payments were accurate. All four credit cards entitle to use AED 100,000.
As per my knowledge, the bank will file a case against me and I would like to know what actions can I take to avoid prison.
In addition, I think I need a lawyer so that he can take care of my documents and release me if they will catch me. Could you please tell me what will the next step be?
How can I get a court decision in my favor and obtain a police clearance certificate after all this?
Thanks.
In accordance with Article 710 of the UAE Civil Code, a loan is a transfer to the borrower of ownership of a sum of money or any fungibles upon condition that the borrower returns, at the end of the loan, a thing equal in amount, kind and quality.
In the case when the borrower is not able to return the loan there is a breach of the loan contract. First of all, it is necessary to try to avoid the conflict by conducting some negotiations with the bank.
If negotiations fail, the creditor can bring a civil action using articles of Federal Law No. 5 of 1985 (the ‘Civil Code’).
Particularly, article 246 of the Civil Code states that the contract shall be implemented, according to the provisions contained therein and in a manner consistent with the requirements of good faith.
Article 710 of the same Code obliges the debtor to repay the loan.
According to article 309 of the UAE Penal Procedure Code, a bodily constraint may be used for the recovery of the fines and other pecuniary penalties.
This constraint may be the detention of the condemned for a period equivalent to one day per each one hundred AED or less, provided that the period may not exceed six months.
You are welcomed to our office to be provided with the procedure of settlement of the dispute.
