Questions & Answers
Consequences of defaulting on a bank loan due to losing job
I have just filed a labour case against my employer where he owes me wages for an amount of over AED 1 million.
At the same time, I'm unable to work anywhere else because my UAE residence visa has not been cancelled by the employer and he is not present in the country.
His UAE visa would get cancelled automatically by this month end in case he does not enter the UAE which will be the 180 days expiry deadline. In that case, my visa also automatically gets canceled.
I have my own dues to pay to the banks which I cannot pay due to unpaid wages, and they are planning to file civil/police cases against me.
If the labor case judgment is in my favor, can I use this judgment for the banks so as to explain them the reason for nonpayment or delayed payment or in the court if they file a civil case against me?
Can this help in negotiating with the bank for a partial or even full waiver or get a restructure with less interest rate spread over several months?
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
It appears you have multiple legal dilemmas and I would advise you on it as follows:
1- Employment Issue- Even though the Labour Case is going on and your visa is about to be cancelled due to the expiry of sponsor visa, this does not stop you from seeking alternate employment.
Dubai Court will issue to you a 6 months' temporary work permit so you can earn your livelihood. I suggest you make this application asap.
2- You can try to negotiate and settle with the bank and use the labour case as a proof. I am sure the banks will understand your situation and give you leverage.
Considering the claim is huge, you can appoint a lawyer to litigate your claim so as to ensure the matter goes smoothly.
You can get in touch with me on 052-9495731 or email on hari@alnassaradvocates.com for further assistance.
Regards,
Hari Wadhwana
