Questions & Answers
Questions & Answers
3 available 3 • View allWhat happens to a bank loan in case of job loss?

2
Q: Salam,
I have been working in the UAE for 7 years. A week ago, my employer threatened me with termination. I have a bank liability of around 164,000.00 AED in a form of a personal loan and I fear that in case of losing the job I will not be able to pay off my loan as I have no savings.
After reading, I understand that I shall have to face a criminal proceeding if I am not able to pay off my loan (as it becomes due in its entirety in case of loss of job) and also imprisonment.
Whatever it may be, I need to know more about it. I was informed by a friend that if a person notifies the bank about this default and termination, then the proceedings shall start and the defaulter shall either be imprisoned or fined.
Will appreciate it if someone can guide me on how things shall be in case I get terminated and the loan amount becomes due and this situation turns into a civil/criminal case.
Best Regards,


May 5, 2021
1108
Legal action by the bank for defaulting on a loan after losing job

1
Q: Hi,
I am looking for expert legal advice.
Someone has defaulted on a loan payment of AED 250,000 and unable to pay due to job loss, currently residing in the home country.
What legal actions can the bank take in the UAE and home country against him?
Thanks for your valuable advice.


Nov 5, 2020
533
Checking for a travel ban and settling a loan with a bank




2
Q: I defaulted on a loan plus credit cards.
I have left UAE almost a year ago and stopped paying my loan and credit cards. The security check I have issued was AED 350,000 but the outstanding loan amount was only 181,000. Now I got a job offer and I am trying to discuss with the bank the settlement plan.
The bank advised me that the total outstanding including two credit cards is 240,000. They are not cooperative and do not respond on time. If I sign the employment contract and travel to the UAE, what are my chances?
1. Will it be possible to be jailed? Denied a work permit or employment visa?
2. Will it be possible for me to negotiate an installment plan with the bank or pay fine and get released?
Please advise!
Thanks





+2
Mar 31, 2020
3029
Legal blog
1 available 1 • View allThe Consequences of Job Loss and Defaulting on Financial Liabilities 26
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.
Feb 12, 2019
18937
Laws & Regulations
5 available 5 • View allFederal Law No. (8) of 1980 Concerning the Regulation of Labor Relations 53
The provisions of this Law, known as "UAE Labour Law", govern the relationship between employers and employees and other labour matters in the United Arab Emirates. There are special labour related regulations applicable in some of the free zones in the UAE.
Apr 20, 1980
103719
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
47943
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33055
Federal 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
148510
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3548

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My husband lost his job 6 years back and he has not been able to find a job.
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