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?

Q: My ex-colleague was an employee in a Sharjah Hamriya Free Zone entity owned by an Indian expatriate. During his tenure as Finance Manager, he was a co-signatory to bank cheques. He has not signed any guarantee cheques or loan agreements with banks except as a witness to the document signed between the bank and the owner. He has resigned in Dec 2015 and since then the owner of the business has run away from the UAE. Now my colleague is under threat from the banks which have provided banking lines to the entity that he will be sued as he was also responsible as Finance Manager of the entity. Want to know can the banks include my colleague as a party to the case? If yes, what would be my colleague's liability? Can the bank file a criminal case & enforce a travel ban on my colleague?

Q: Hi, I would like to ask about the company, where I am working for the last 5 years. We are W.L.L. company and the local partner was a sleeping partner. The other partner was Indian and he took a loan from the bank on the company's name and used it for his personal use and drained it in other business. He increased the creditors and now he left the country. At this situation, the local partner comes to know about his intention of not coming back. Now, all the responsibility falls upon the local partner's shoulders. The company has creditors of around BD 140,000 / and a bank loan of BD 160,000/, which is impossible to pay by the local partner. For running business outstanding, mostly companies has cheques issued by the Indian partner (Local partner is not authorized to sign any cheque according to MOA), and the bank has guarantee papers signed by the local partner. Can you please advise how we can save the local partner and file a case against the Indian partner?

Q: I have won a labour case from the Abu Dhabi labour court against my company and execution has done during Nov 2020 but the money is not yet received. The company is now working. If the company will declare bankruptcy now, what are the chances of getting my money as per the final judgement?

س: كفلت أخي مجرد ضمانة عادية بدون أن أطّلع على الأوراق في البنك ثم فوجئت بحكم تنفيذي عليّ وأنا قد أُخرجت من عملي بنفس تاريخ القضية. الآن كل أموري متوقفة حتى أولادي لا يدرسون للعام الثالث. أرجوكم هل من حل؟ وجزاكم الله خيرًا!

س: زوج تكفَّل بسداد مبلغ قرض عقاري لزوجته الأولى لدى بنكين كونها لا تعمل؛ الأول قيمة قسطه 16660 درهم والثاني قيمة قسطه 4290 درهم، ومن ثَم رفعت عليه قضية نفقة زوجية ونفقة ستة أبناء وتم الحكم بمبلغ 22000 درهم. قامت الزوجة الثانية وهي مطلقة برفع قضية نفقة وتم الحكم بنفقة شهرية بقيمة 2500 درهم شهريًا. مجموع المطلوب شهريًا 45450 درهم مع العلم أن راتب الزوج 32900 شهريًا، والزوج لا يملك أي شيء سوى راتبه. أسئلتي الآن: 1. هل تستطيع البنوك بيع منزل الزوجة لسداد المبالغ المستحقة لقيمة القروض المستحقة مع العلم أن الزوجة لا تملك هي الأخرى سوى هذا البيت بالإضافة إلى أنها لا تعمل؟ 2. هل يستطيع الزوج تقديم طلب إثبات حالة إعسار كون التزاماته تجاوزت دخله الشهري؟ 3. هل يعفي إثبات الإعسار الزوج من التزاماته المالية لدى البنوك كونه كفيلاً لزوجته وليس المالك الأصلي للعقار؟ 4. ما النصيحة التي تنصح بها الزوج؟ وشكرًا!

س: السلام عليكم، قمت بكفالة شخص قريب لي كفالة عادية، ولقد استحق الدين منذ أكثر من 6 أشهر ولم يتخذ الدائن خلال هذه الفترة أي إجراء قانوني ضدنا أو يرفع دعوى مطالبة مالية. هل تسقط الكفالة في هذه الحالة بالتقادم؟ شكرًا جزيلاً!

Q: Dear sir/madam, My company (Dubai mainland) forcefully made me sign as a guarantor in a cheque bounce case without telling me anything. Dubai Court has issued a travel ban because of this and now I cannot travel. I am not the owner nor the signatory of the cheque. Please tell me whether the guarantor can be changed to another person. If yes, what is the procedure? And how much will it take to relieve me from this?

The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.

An interview-format article covering the topic of shareholder disputes in the UAE and pre-emptive measure to be considered. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

An interview-format article covering the topic of the new amendments to the laws in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

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.