Can I be prosecuted if I can’t repay my debts? Here’s what the UAE’s laws say

Can I be prosecuted if I can’t repay my debts? Here’s what the UAE’s laws say

Dubai: Can a person be prosecuted if they are financially unable to repay their debt? In a public service announcement through their social media channels, Dubai Prosecution educated people about how such cases are dealt with legally.

In the video post, Khalid Obaid Al Mansoori, Chief Justice of the Executive Court, said: "He shall be prosecuted until his insolvency is proven by a judgement. However, the court shall continue looking for his properties and seize them if it appears."

If you find yourself in a position where you are unable to pay your financial liabilities because of unforeseen circumstances, you may be considering declaring insolvency.

In 2019, the UAE Cabinet approved the Federal Decree-Law No. 19 of 2019 on insolvency, which was effective from January 2020. While the law offers relief to a person who is unable to pay their debts, the process to apply for insolvency is quite detailed for the court to determine whether a person is truly insolvent.

According to Jihene Arfaoui, a Dubai-based legal adviser, Articles 3 to 27 of the law lay out a detailed and clear process that needs to be followed by the debtor for the settlement of the financial dues.

“As per the procedure for settlement of