Bankruptcy is defined as a process (legal and accepted as legal) where a debtor who is not capable of paying the debts, tries to get support. Bankruptcy comes into effect based on the orders given by the court. Therefore for “Bankruptcy”, the debtors have to step inside the court.
It’s a process where a company takes the facility to decrease the debts, and delinquent debts to improve the liquidity. By doing this business takes the chance to carry on the operations. It involves a decrease in debts and revising the debt payment terms and conditions.
When a business, can’t pay the debts, to whom the business is owed, then Bankruptcy is one of the options. The Article 67, UAE Bankruptcy Law, explains the Bankruptcy procedures. If it could be possible, then Debtors must be, helped in restructuring the Debt. Debtor must be given the opportunity to restructure their Debts.
He has the right to declare Bankruptcy as per Article 67, UAE Bankruptcy Law. He can choose and carry forward the liquidation, of the assets (his assets) for managing the liabilities. He can also contact UAE Courts for Bankruptcy. Article 68, UAE Bankruptcy Law explains that Debtor has the right to proceed to court with the purpose of Bankruptcy if he has acceded to the 30 Days by not paying his liabilities. For a fair liquidation, it’s better to file the bankruptcy and liquidation through the court.
Cases and Executions
If there have been filled several executions against you “Post-Civil Cases” then, if the court accepts the bankruptcy, then the court also orders to cancel all the executions. If the debtor is not happy with the restructuring procedures, then the court will straight away pass the restructuring orders. If a Debtor wants to file the Bankruptcy of his business, then he is entitled to Federal Decree #9, of 2016, Federal Decree #23, 0f 2019, Federal Decree#21 of 2020 and a few more. Article 124, UAE Bankruptcy Law 2016, explains that the court may order the bankruptcy orders (may also refuse) if it finds that debtor is not comfortable with the restructuring orders.
Yes, an Individual or Personal Insolvency is also possible. It is described by Federal Decree-Law # 19, 2019. UAE Bankruptcy Law also allows personal Insolvency along with business insolvency.
If the debtor wants to file the business or individual bankruptcy then he truly needs to consult the lawyers. These lawyers are also called Bankruptcy Lawyers Bankruptcy Advocates or Bankruptcy Legal Consultants. These Bankruptcy Lawyers have to be UAE National Lawyers if the Bankruptcy and the fair liquidation have to be filled through the court. Just to get the legal idea, legal consultants can also help out by offering legal advice. There are very well-established lawyers in dubai for the Bankruptcy and Liquidation. For example, Ask The Law – Al Shaiba Advocates and Legal Consultants by Advocate Mr Mohamamd Ebrahim Hassan Al Shaiba. This Law Company has a special reputation in filling the Bankruptcy in Dubai and all over the UAE.