What should a guarantor do when the original debtor fails to pay?

Questions & Answers

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Liability of a guarantor after the debtor fled the country

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

7528

What rights and possibilities does the beneficiary have against the guarantor?

Q: What is the enforcement process of a personal suretyship? My maid agreed in writing to be the guarantor of a private loan (AED 10,000 + AED 2,000 interest fees) for a principal debtor against the beneficiary. The principal debtor left the country and is not available. What rights and possibilities does the beneficiary have against the guarantor?

Jun 13, 2021

343

Legal liability of the loan guarantor in case of default

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

3280

Wife stuck with husband's company's bounced checks. Can he be responsible?

Q: Dear Sir/Madam, My husband started a company in my name and I signed several cheques on his behalf and a few of them bounced due to lack of funds. Now, I have 2 civil cases and a travel ban on me. Can my husband take up the responsibility of the cases legally and get me released from the cases and travel ban? He was doing all the operations and I was just an owner for the sake of name as he was employed in a private company during the time of the formation of the company.

Dec 13, 2023

130

Legal blog

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Breach of Trust and Debts as the Base of Corporate Crime

This article intends to give a brief idea of corporate crime, how it happens in the corporate world, the relevance of choosing the right legal action and mechanism.

Mar 26, 2017

1347

Bankruptcy Law and Personal Insolvency 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.

Oct 1, 2020

4987

Laws & Regulations

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Federal Law No. (3) of 1987 Promulgating the Penal Code

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

47979

Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law

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

33086

Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates

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

148583

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Khaled Ebid

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As-Salaam-Alaikum everyone, Please advise me on where I can find an affordable family lawyer. I'm only earning less than 5k AED monthly. I really want to apply for modification of the agreement for my 3-year-old daughter, but my ex-wife is not responding or cooperating, assuming she wants to retain the current agreement for 3 hours per week. I want to enforce my role as a guardian of my child and modify the agreement for more time and to be more included in the decision-making for her well-being.

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