Clearance of Debt as Per Insolvency Law in the UAE
Insolvency comes about when a person who is not qualified as a trader. He is no longer able to pay his debts due to debt defaults or bankruptcy. This is often referred to as the Insolvency of the natural person.
Debt recovery Dubai agencies can help you here with their expertise, skills, and knowledge. This is highly important if you don’t want to make legal blunders.
- Settling One’s Debt
Under the Insolvency Law, the Debtor needs to attend court. Here, he places a request with the court to be allowed to settle his financial obligations. It is done with his creditors amicably and with no litigation proceedings.
If the court finds the debtor to be insolvent (which would comply with the new law) the application is legible for approval.
- Required Documents
If the Debtor is successful in the above application some documentation will be needed. These are a statement with the details of the current (and expected) creditors of the debtor. Usually, the names and addresses of the creditors along with the amount of each debt will suffice.
Moreover, a concise statement listing all the debtor’s movable is required by debt recovery Dubai agencies. And immovable assets and their approximate value at the time of the application.
- The Job of the Appointed Expert
The court-appointed expert will work with the debtor to create a feasible payment plan. Copies of the plan will be sent to all of the creditors and finally to the court within 22 working days from the day the expert-created the plan. Extensions to this time can be awarded by the court when deemed necessary.
Within 10 working days of sending the plans to the creditors, the expert will set up meetings between the Debtor. The time and place for these meetings will be set by experts with the aim being to discuss and agree on acceptable plans.
Once all the creditors have agreed on their respective plans it is still possible for amends to be made. If the expert presents these amendments to the court. If the court agrees to all or part of the changes it will notify all creditors of the approved changes.
Therefore, if you want to recover your debts under this law, it is better to seek legal help. Debt recovery Dubai agencies can help you here. They are available in Ajman, Fujairah, and Abu Dhabi too