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,

Q: Dear Madam, I got terminated from my company & I have a bank loan around AED 75000. What do I have to do the next step? Please advise me (ASAP) Best regards

Q: My sister lost her job a few years ago, due to that she suffered a head stroke, resulting in defaulting of payments of her loans to two banks (approximately combined value of 120000 dirhams). She has a case against her (bounced cheques approximately 44000 dirhams) for house rent. She is stuck in the UAE, overstaying illegally and can't travel. She doesn't know what to do, living in fear from the cases against her and can't find a job to try to solve the legal issues. Please she needs help and advice to ease her suffering and solve her legal situation to live without fear knowing that the amounts due are overwhelming and can't be paid at once by her. Is there any solution other than negotiating with the banks and the debtors who insist on her paying the full amounts in one shot to lift the legal cases and the travel ban against her? They offered a slight deduction but due to her situation, she can't pay the amounts.

Q: Hello, Is it possible to negotiate with the bank to consolidate my loan and credit cards balance when I'm outside the UAE? I have already resigned and relocated to another country. I've left a remaining loan balance of AED 170k + 2 credit cards balance (10K + 34K). My gratuity (33k) is being held by the bank and I missed this month's loan payment. I don't want to incur more interest by paying only the minimum on the 2 cards and wanted to negotiate with the bank to consolidate all debts into a single monthly payment. Right now I can only guarantee a 5K monthly payment. Please advise

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.

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.