Questions & Answers
Questions & Answers
4 available 4 • View allLegal liability of the loan guarantor in case of default

2
Q: I signed a personal guarantee as "the wife" for a loan to my husband's company without being told what the documents meant.
Do I have any recourse to prevent it from being called for?


May 18, 2020
3270
Liability of the guarantor toward creditors in the UAE

6
Q: Hello,
I signed as a guarantor for my brother for a company loan he took, I was a partner. However, my brother has left the country 2 years ago.
Now, I have a civil case on me and the court and bank ask me to pay the amount of AED 450,000.
Please advise, what happens if I am unable to pay this money?


Oct 21, 2018
4864
Liability of a guarantor after the debtor fled the country

12
Q: Hello
I signed as a guarantor for a person's company loan for AED 500,000.
The person is no longer in the country and now there is a civil case on me.
What is the penalty or jail term I would be looking at?
If I go through the jail term, is the outstanding amount is also cleared?


Oct 9, 2018
7519
What should a guarantor do when the original debtor fails to pay?
1
Q: Hello sir,
I hope you are doing well!
I had unknowingly signed a personal guarantee of a loan taken by my husband for his general trading.
Now I am liable to pay the debts when my husband has defaulted even though I was not a partner or related in the company.
I am a housewife with no source of income and have no assets or even bank accounts in Dubai under my name.
How can the court instruct me to pay the debt?

Nov 27, 2022
265
Legal blog
1 available 1 • View allBankruptcy Law and Personal Insolvency Law 10
This article will briefly explain about the Personal Insolvency Law of 2019 and Bankruptcy Law of 2016 in the UAE. Previously, there was only the Bankruptcy Law that was available for the commercial companies, merchants, traders, and similar persons who were suffering from the financial crisis but now individuals have such options available as well especially considering the effects of COVID-19. Both laws were issued to assist distressed persons and entities by offering them settlement options.
Oct 1, 2020
4973
Laws & Regulations
2 available 2 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
Dec 15, 1985
148535
Federal Law No. (3) of 1987 Promulgating the Penal Code 29
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.
Dec 8, 1987
47954

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