Questions & Answers
Defaulting on bank loans and possible actions for recovery
I have a few questions.
Q.1 My friend has a bank loan of AED 60,000 approx from a bank here in the UAE and he did not pay for the last 7or 8 months and the bank is calling for recovery.
They have a law firm here which has a branch in Pakistan and this bank also has a branch in Pakistan.
If my friend travels to Pakistan due to an emergency now and the bank proceeds with its action, what action(s) will that be?
(So far no action from the bank - no case from them)
Q.2 If he goes to Pakistan, what will the consequences be for an already running civil case of a bank loan default with another bank, this bank has no branch in Pakistan?
With reference to your inquiry, and based on the provided information, the bank can initiate legal proceedings against your friend, both criminally and civilly.
Also, whenever the bank holds a judgment issued against your friend, they can easily execute it against him in Pakistan.
As for all the consequences, be informed that they cannot be counted as limited since there are quite many.
My recommendation is to settle with the bank which would most probably accept anything rather than nothing.
