Q: Hello, I’ve been in redundancy from my employer related to COVID-19 impact to the industry. What will happen to my personal loan?

Q: Hi, I took a personal loan and have a current outstanding 18 months to pay amounting to AED 63,975. In 2018, I lost my job but still managed to pay my dues until April 2019. My salary on the new company is lower compare to when I took the loan, and due to current COVID-19, my current salary has been cut further down of 40% and will not be able to pay my monthly dues. What with be my legal case if I will not be able to settle this outstanding amount? Your response is highly appreciated.

Q: Hi, I have an outstanding loan with 97000. I have been always paying and have a good history with the bank. The loan was given with a salary guarantee from my company. I work for a reputable airline, however, I was just notified a couple of days ago that I have been made redundant due to the pandemic. I understand the bank will seize my end of service gratuity. That will leave me with around 70000 outstanding. Based on the current market situation it will be hard to find a job on time. I have an official letter from my company with the reason why my contract was terminated, although my contract is auto-renewal. I have a few questions, if I may. 1- Since I haven’t missed a payment before, when does the bank issue a travel ban? 2- What are my options at the moment? I won’t be able to repay the outstanding unless I find a job. 3- What kind of legal action can the bank take against me?

Q: I posted a question about closing a large business ($400.000) loan for our Florida start-up company to be manufacturing. We were told: "... partners who reside in countries with travel restrictions or medical conditions will be represented by the UAE central bank legalization officer who shall oversee the entire process in their absence in line with UAE COVID-19 safety measures. Furthermore, you the beneficiary is expected to take full responsibility for the legalization cost of all documentation to be used in this transaction at the Dubai magistrate court with the assistance of the UAE central bank official who shall represent you in the entire process of this transaction." The quoted fee was $6,800 to be paid in advance or at closing if we attend personally. Does this sound like a legitimate procedure for using an agent to sign loan documents? How can we conduct due diligence on this investment firm based in Kuwait to be sure we are dealing with the actual company? Thanks.

Q: I have an LLC company in Dubai mainland since March 2013, and I'm a 49% shareholder of the company. I have taken a loan from a bank in August 2019 and have paid 7/48 instalments to the bank. Then, I was unable to pay back due to the COVID-19 crisis. I have the following unpaid debts: 1. Business loan from a bank, outstanding about 300,000/- 2. Principle outstanding credit cards on personal name: A. 60,800/- B. 15,000/- C. 5,000/- Sum of 3 cards 80,800/- 3. I have unpaid rent of business office in Dubai amount 8000/- of period Sept 2020 - Dec 2020. The landlord refused to accept to take keys as the contract ends in December. He perhaps filed some case against me. Currently, I'm out of the UAE and would like to get a benefit from the law of bankruptcy/law of insolvency.

As the world is currently experiencing a major lockdown and suspension of almost all commercial and civil operations, the question arises in the novelty of Coronavirus outbreak on how serious it is to be dealt with as a Force Majeure.

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.