Questions & Answers
Questions & Answers
3 available 3 • View allHow can I reach a loan settlement with the bank on relaxed payments instead of one-time payment?




0
Q: I lost my job during the pandemic and had to leave the UAE. After one and a half years, when I returned to the UAE, the bank's collection department had filed a case against me. My original loan amount was only 91,000 AED, but with profit, it increased to 134,000 AED.
I have been paying regularly, and now I have only 59,000 AED left. I asked the collection department to offer me a reasonable repayment solution, suggesting a settlement of between 20,000 and 25,000 AED. However, they demanded a one-time payment of 50,000 AED, which I cannot afford due to a lack of funds.
Now, they are threatening to file another case against me with a travel ban. I would like to know if the collection department can file a case against me and if the judge would help provide a reasonable payment solution.
I have repeatedly asked the bank for a more reasonable settlement amount, but they refused and insisted on filing the case.





+2
Mar 3, 2025
121
What to do with the bank if they accept to settle only with the entire loan?
1
Q: Hi,
Firstly, thank you for this service.
Let me briefly describe my situation.
Been in Dubai for a long time. Lost my job recently and frantically applying for a new one. Currently on garden leave until June, so only 2 more salary payments are pending.
I have a loan for AED 950k and an outstanding mortgage of 900k (the value of the property is 2m AED.
Afraid that after June I will not keep up with payments on the loan for sure which are 33k per month. Willing to settle since I have access to some funds but the bank only wants to settle on the full amount with all 5-year interest payments added.
I have access through the family of approx. AED 500k to use for settlement. The loan was for 5 years and paid without any defaults for 26 months. I have no savings at this time but in the coming June, I will most likely default.
Any advice would be appreciated.
God bless.

Apr 22, 2022
395
How can you reach a settlement to avoid legal action by the bank if you lose job and can not repay your loan?




0
Q: My brother lost his job in the UAE 8 months ago and has a debt of AED 170,000 to a bank.
He is finding it extremely difficult to make monthly loan payments to the bank, as he has been unable to find a job even after 8 months.
What options does he have to reduce/settle his bank debt without having restrictions on him, like a travel ban, etc?
Please help him find the best possible solution considering his current financial situation.





+1
Apr 9, 2025
235
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4 available 4 • View allThe Consequences of Job Loss and Defaulting on Financial Liabilities 26
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.
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The UAE travel ban may be imposed on a person on various grounds, for instance, as the result of criminal offences, unpaid loans, breach of immigration laws or family matters. Implications of such a ban can be financially severe and daunting for the affected person. This article aims to give readers a clear understanding of what is the UAE travel ban, what are the grounds and procedures for its imposition and removal, how to check if the person is banned from travelling and other related topics.
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Bounced Cheques in the UAE: What You Need to Know in 2024 292
In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.
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Laws & Regulations
2 available 2 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
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Federal Decree-Law No. (50) of 2022 Issuing the Commercial Transactions Law 0
The provisions of this Federal Decree-Law No. (50) of 2022 Issuing the Commercial Transactions Law, known as the "New Commercial Code" governs commercial transactions in the United Arab Emirates. The New Commercial Code repeals the previous UAE Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law.
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Can a Muslim revert woman in the UAE obtain a Sharia divorce and remarry? 0
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Are employers required to pay redundancy compensation for terminations due to restructuring? 0
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