Q: Dear Sir, I have not paid a loan amount of AED 82000/- due to job loss. The bank is threatening to deposit a security cheque for AED 220,000/-. How will the bank deposit more than the outstanding amount? If the amount exceeds the cheque amount of AED 200,000/-, what is the next action by me? Please clarify Thanks and regards Seshad

Q: Hi, This is M. I have an outstanding loan amount of AED 48,000 from a bank. I took a loan of 65,000 AED almost 1 year and 6 months back from a bank in a Dubai branch. Now, due to job loss, I am not able to pay the outstanding. I want to know what can the consequences be and what will happen if the bank files a case in Abu Dhabi, although I took the loan from their Dubai branch.

Q: I am a UK passport holder. Can you assist me? I worked in the UAE, Abu Dhabi. Two years ago, I lost my job and returned to the UK but I was unable to keep up payments on my loan and credit cards after my end of service money run out. The banks started hounding me when I could not keep up payments and threatened to raise a civil case and a GCC travel ban. I do not know if they went through with this or not and what the consequences would be if there are a travel ban and a civil case raised in the UAE or GCC countries. I now have the chance of a job in Qatar and a chance to make some money again to try and pay off my debt in the UAE. Can I enter Qatar? Would I be arrested? Am I at risk and should not take the job? What are my options? I can not start to pay back any UAE money until I get a job and start earning again. Please advise! Thanks!

س: السلام عليكم في قضايا التنفيذ لصالح البنوك، هل يستطيع المنفذ ضده طلب تقسيط المبلغ؟ وهل يتم هذا عن طريق قاضي التنفيذ؟ وهل يستطيع القضاء إجبار البنوك على قبول التقسيط؟ شكراً

Q: Dear Sir/Madam, I was living and working in Dubai and had a personal loan in the amount of AED 1,000,000. I was paying my monthly payment of about AED 23,000/month regularly but then I lost my job. I went to the bank and informed them about the job loss and asked for restructuring. They restructured and brought my payment down to 13,000/month. I paid for 2 months but could not make any more payments since I ran out of money and have now defaulted. Is there a way for someone to help or guide me on a way out of this situation? I can afford to make a payment of AED 4,000/Month.

Q: I lost my job during the pandemic and had to leave the UAE. After one and a half years, when I returned to the UAE, the bank's collection department had filed a case against me. My original loan amount was only 91,000 AED, but with profit, it increased to 134,000 AED. I have been paying regularly, and now I have only 59,000 AED left. I asked the collection department to offer me a reasonable repayment solution, suggesting a settlement of between 20,000 and 25,000 AED. However, they demanded a one-time payment of 50,000 AED, which I cannot afford due to a lack of funds. Now, they are threatening to file another case against me with a travel ban. I would like to know if the collection department can file a case against me and if the judge would help provide a reasonable payment solution. I have repeatedly asked the bank for a more reasonable settlement amount, but they refused and insisted on filing the case.

The management of individual financial affairs is crucial and all the actions must be weighed down while committing to any financial liability. Whether it's job loss that may have lead to financial failure or the opposite, one must be aware of the personal liability which will not diminish by paying fines for cheque bounce cases. There are two major types of liabilities, criminal liability and civil liability. Each has its own significance, hence, must be dealt with accordingly.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.