Questions & Answers
What to do when you default on financial liabilities of your company?
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.
Hi,
Bankruptcy is applied to traders, while insolvency is applied to individuals and there are many conditions to accept the insolvency of an individual.
Please advise under who's name the lease agreement is signed (yourself or the company).
Maybe there is a third solution which is liquidation.
Please share more info and documents.
Sayed
Dear Questioner,
After we get a look at your inquiries mentioned above, we would like to inform you that any debts under the company name will not be effective on your name due to the fact that it is a limited liability company (LLC).
However, we can assist you legally to issue a legal expert report to check and provide the current situation of the company, the debts and any other liability.
Moreover, we have to get a POA from you to us to be able to act on your behalf in order to check first if there are any cases that might be imposed on your name or your company name.
Afterwards, and once we finalize the needful check, we can discuss on call our strategy to work on your cases until settled.
Please feel free to contact us at our email.
Thanks.
