- Legal Articles
- Ask Elhais
February 19, 2020|
New Insolvency or Bankruptcy law for individuals has recently received quite a lot of attention from foreign expatriates living in UAE. The Cabinet of UAE has lately sanctioned a federal law to explicitly govern the cases of bankrupt individuals within the country. The law has been issued to safeguard the business interest of UAE residents, enhancing conditions of insolvent individuals and to ensure healthy competition among businesses.
Corporate Lawyers of Dubai have been vigorously asked about the nitty-gritty of the new law and how can individuals apply under the law to protect themselves from going bankrupt.
It is important for the individuals that the Law will protect the individuals for existing or anticipated financial crisis or disability to settle outstanding debts. The legislation will assist individuals in restricting their unpaid debts and will offer an opportunity to obtain loans on compromised or effective rates. The most significant feature of the laws favoring insolvent individuals are as follows:
a. decriminalization of financial obligations;
b. avoiding legal prosecution;
c. Offering jobs.
It has been further confirmed by the Cabinet of UAE that the law will be effective from January 2020, although a concrete legislation has not be issued to be referred to. Pertinently, financial experts will be appointed by the court in order to review the financial position of the insolvent individuals. The experts will be entitled to arrange payment plans for a maximum of three (3) year allowing them to settle their financial obligations in accordance with the plan.
It is of significant importance for readers to note that if the insolvent has been given a payment plan, they will not be allowed to seek further loans until the payment plan, unless approved by the relevant court authorities. The law has the further ability to complete legal procedures easily and to reduce court charges for individuals.
In a nutshell, the ideology behind issuance of this law is not only prepare payment plans to enhance their credit ratio, but to ensure swift growth in this dynamic market. The law, which supplements existing finance related laws, will add to expanded straightforwardness as far as common obligation reimbursement exchanges, and will at last fortify UAE position as a perfect center point for businesses, where the privileges of all parties are ensured.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.