The UAE has issued new legal legislation,\r\nwhich is a bankruptcy law that protects the rights of all parties, especially\r\ncreditors and debtors, because its legal stipulations enable debtors to fulfill\r\ntheir obligations over a longer period of time, and they can continue their\r\nbusiness and not have to leave the country as a result of the failure of their\r\nbusiness.<\/p>\r\n\r\n\r\n\r\n
With the entry into force of the new\r\nbankruptcy law No. (9) of 2016, it has become a lifeline in many cases for\r\nentrepreneurs who face difficult financial challenges, and entrepreneurs and\r\ninvestors in the United Arab Emirates felt more protection in the market,\r\nbecause it limits the manipulation of companies located in Market without\r\nfinancial cover.<\/p>\r\n\r\n\r\n\r\n
The law includes commercial companies that\r\nare governed by separate financial insolvency systems, especially small and\r\nmedium enterprises except those registered with the Dubai World Center and Abu\r\nDhabi Global Market, and also paves the way for financial insolvency in cases\r\nof debt exceeding 100 thousand dirhams (about 27 thousand dollars) in case If\r\nhe fails to pay it within thirty days. The law also includes measures to\r\nimplement bankruptcy prevention, financial restructuring, development of new\r\nfinancial resources, and liquidation of troubled and debtor companies.<\/p>\r\n\r\n\r\n\r\n
The strength of this law lies in the\r\nremoval of criminal offense from the time period of returned checks issued by\r\ninsolvent companies subject to restructuring by judicial order. On the broadest\r\nlevel, the new law includes a more organized and structured schedule to rescue\r\ncompanies in critical financial situations.<\/p>\r\n\r\n\r\n\r\n
Debtors who initiate bankruptcy or other\r\nprocedures within 30 days of being considered insolvent benefit from protection\r\nfrom criminal penalties and from claims filed against them by creditors.\r\nHowever, in the event that this period and liquidation cases are exceeded\r\nwithin 45 days of default, the law includes provisions that are subject to\r\njudicial prosecution by creditors for bankruptcy resulting from negligence, the\r\npenalty of which may reach imprisonment of up to two years. It is up to the\r\ncourt to decide on the issue of strict punishment.<\/p>\r\n\r\n\r\n\r\n
The existence of the new bankruptcy law has\r\npositive impacts on the economy in general, as it protects the rights of\r\ncreditors, the interests of troubled merchants together, and the reorganization\r\nof the companies \u2019business, so as to facilitate the procedures for\r\nregistration, exit, and movement between different economic sectors. Whereas,\r\nsome of its articles stipulated giving a deadline to the troubled companies\r\nthrough which the judicial conciliation can be reached.<\/p>\r\n\r\n\r\n\r\n
Emerging companies facing financial\r\ndifficulties will not simply leave the country to try to restructure their\r\nfinancial conditions remotely. Under the legal protection that the new\r\nbankruptcy law imposed, these companies have enough time to pay off the debt\r\nand restructure.<\/p>\r\n\r\n\r\n\r\n
Experts believe that bankruptcy laws give\r\nflexibility to the movement of the economy and enable investments to deal with\r\ncredit difficulties in an organized manner that guarantees the fulfillment of\r\nobligations and thus reduces losses resulting from defaulting of debtors,\r\nensuring that creditors have a legal mechanism to access their rights. And the\r\ninternational experiences of bankruptcy laws guarantee in many cases protection\r\nfrom creditors, which is in the interest of the economy in general and gives an\r\nopportunity to debtors in order to re-arrange their positions in a way that\r\nguarantees creditors themselves ultimately accessing the largest possible\r\namount of money owed to them instead of losing them entirely in the event that\r\ndebtors are pursued.<\/p>\r\n\r\n\r\n\r\n
We at Juma Al Naqbi advocates and\r\nLegal Consultants are working on studying our clients \u2019files and applying the\r\nprovisions in bankruptcy law and its legal rules to ensure the best results and\r\nbenefits in order to maintain the continuity of their business and their lives\r\nnormally.<\/p>\r\n\r\n\r\n\r\n
Confronting bankruptcy is stressful and worrying for you – let the Juma\r\nAl Naqbi advocates and legal consultants help you to minimize the permanent\r\ndamage to your health and finances when you declare bankruptcy.<\/p>\r\n\r\n\r\n\r\n
Bankruptcy is the process of providing protection to people who are no\r\nlonger able to pay their debts when due.<\/p>\r\n\r\n\r\n\r\n
A person’s bankruptcy may be declared voluntarily, or by the submission\r\nof an application, or by a court order incited by a creditor. A trustee is\r\nappointed for a bankrupt person for a period of no less than three years.\r\nValues control their properties and describe the assets to distribute them\r\nequally to unsecured creditors (creditors who do not maintain a debt security).<\/p>\r\n\r\n\r\n\r\n
The effect of bankruptcy is that unsecured creditors are generally\r\nunable to initiate or continue debt recovery procedures, even though the rights\r\nof secured creditors are not affected.<\/p>\r\n\r\n\r\n\r\n
Juma Al Naqbi advocates and Legal Consultants has an experienced team\r\nthat helps trustees, creditors and debtors in providing advice and legal\r\nrepresentation on all aspects of personal bankruptcy.<\/p>\r\n\r\n\r\n\r\n
We will advise the trustees regarding their legal obligations and the\r\nlegal redemption procedures available to them, including unfair preferences and\r\nother cancelable transactions, and possible reasons for taking action.<\/p>\r\n\r\n\r\n\r\n
Our team can help creditors file a bankruptcy notice and apply to the\r\ncourt for a detention order to appoint a trustee in the possession of the\r\nbankrupt. This gives the trustee the opportunity to “recover” the\r\nbankrupt assets in favor of the creditors.<\/p>\r\n\r\n\r\n\r\n
If you are in debt, we can help you voluntarily enter into bankruptcy to\r\nend all debts, or to counter a bankruptcy notice issued by one of your\r\ncreditors.<\/p>","protected":false},"excerpt":{"rendered":"
The UAE has issued new legal legislation, which is a bankruptcy law that protects the rights of all parties, especially creditors and debtors, because its legal stipulations enable debtors to fulfill their obligations over a longer period of time, and they can continue their business and not have to leave the country as a result […]<\/p>\n","protected":false},"author":1,"featured_media":836,"parent":21,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_joinchat":[],"footnotes":""},"class_list":["post-349","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\n