The outbreak of coronavirus or the pandemic has left many families strangle with the financial stress of surviving in the market, which led to mass number of employees moving from UAE to their home country or other countries. It is unfortunate to witness the struggle of families and in some circumstances, some individuals are unable to pay off their credit or loan taken from banks in UAE and plan on leaving the country without settling their outstanding debt.
The commercial lawyers of Dubai has always informed residents of Dubai or companies registered in Dubai to carefully understand the terms and conditions of the loan offered by banks and prevent such event where they are unable to pay off the debt as outstanding debt in UAE is not just a civil case, but a criminal action may be taken against you by the other party.
In most cases, the bank primarily registers criminal case against the client for defaulting in paying the outstanding loan or can register a criminal complaint on the basis of dishonored guarantee cheque submitted by the debtor. Upon either finishing his sentence or submitting fine before the court authorities, the debtor will be released from the authorities. The banks usually contact the debtor to settle the matter by paying the outstanding debt.
Nevertheless, bank may directly approach the civil court and register a civil case against the debtor. It is pertinent for all the debtors to be aware of the fact that bank may file an application for a travel ban against the debtor on a strong apprehension that the debtor is planning to leave the country without paying the outstanding debt. The application for travel ban will be registered before urgent matters court and a travel ban maybe imposed within maybe 2-3 days from the date of application.
Secondly, the bank will thereafter register a civil case against the debtor for claiming the outstanding debt before Civil Courts of the relevant Emirate. Upon receiving the favorable judgment, a civil case judgment is then submitted before the Execution courts which will oblige the debtor to remit the outstanding payment or an arrest warrant will be issued against the debtor, upon the request of the creditor.
Another significant concern raised by many readers is the importance of the judgment issued in UAE in their home country, can the creditors use that judgment against them in their home country and oblige them to pay. In case, you are thinking you are secured in your home country from any judgment issued in UAE, you are completely in oblivion, as creditors can secure their judgments in your home country and may claim your assets. Many countries have signed reciprocal treaties with UAE for allowing judgments to be executed in their country.
In a nutshell, it is always advised to restructure your finances in order to pay off your outstanding bills or loans to avoid any legal consequences. Alternatively, you may appoint lawyers of Dubai to ether assist you in negotiating with the bank or to represent you before relevant court authorities, if needed.