Q: My service has been terminated by the company as it is stopping its operations in the UAE. I have 2 credit cards that have a due amount of nearly 130K for which I keep paying the EMI so far. Meanwhile, I don't have any job offer in my hand. How can I manage in case I have to leave the country, or if not, in a position to pay the due immediately?

Q: The UAE cabinet approved a new law - The Insolvency Law of Natural Persons. Please advise how to file the insolvency case before the court and the documents required for filing the case.

Q: Hello Sir, I have a personal loan with one bank in the UAE with an outstanding amount of 250000. The total loan amount was 275000. I had paid off 5 instalments. I want to know, can I do a settlement with the bank in case I lost my job?

Q: Dear Sir/Madam, Do I qualify to file for insolvency/bankruptcy if I have a commercial case of less than AED 30,000 and am unable to pay it due to a long-term unemployment?

Q: Dear Lawyers, An old healthcare organization goes into insolvency. I, being employed by the organization, have been informed that my offer letter is considered null and void due to insolvency. They are asking me to sign an agreement stating that I have no relationship with the previous company and cannot file a case against the new company. In this case, what should be done? Do I need to sign the agreement? They have not provided any details about the new group that is going to take over. Could you kindly advise on how to approach this situation according to UAE labor law?

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.

Dealing with financial difficulties can be overwhelming, but the UAE provides a comprehensive legal framework to manage bankruptcy and insolvency in a way that benefits both debtors and creditors. Understanding these laws and how they work can make a huge difference in navigating the process successfully.

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.

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.