Q: Dear Sir, I have not paid a loan amount of AED 82000/- due to job loss. The bank is threatening to deposit a security cheque for AED 220,000/-. How will the bank deposit more than the outstanding amount? If the amount exceeds the cheque amount of AED 200,000/-, what is the next action by me? Please clarify Thanks and regards Seshad

Q: I've taken a loan for 5 years from a bank in Dubai. I've paid for 2.5 years, then I've lost my job and had to leave the country. Until now I can't find a job. I couldn't pay the loan instalment for 8 months. The bank said that they've already written off the loan and is threatening to file a police case. The remaining loan is AED 340k. All I have now is only 150k. I'm afraid that I pay what I have, then stop paying. And then the bank will file a police report. What should I do? Is it possible to reach a deal with the bank to pay the 150k and they close the case and give me back the cheques? If they're going to file a police case anyway, then it's better that I don't pay the 150k. It'll be a lose-lose situation for me and the bank. I want to hire a lawyer to help me close this issue. And explain to me what are my options and how much will his service cost me.

Q: Dear Madam, I took a personal loan from a bank for AED162,000/- and paid AED 139,000/-. Now, the balance is 84,000/- (with interest). I received information that the bank has filed a case for AED 219,000/-. I did not pay the monthly EMI of AED 4,538/- for more than 6 months due to job loss. How is the bank filing a case for 219,000/- instead of the actual amount? What is the procedure to reply to the bank against this case? Please advise. Thanks and regards, S.

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.

An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

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.