Around the year 2008, after the Global Financial Crisis, many companies went into closure which directly and indirectly affected thousands of employees. As a result, individuals were forced to leave the country with their debt unpaid. Legal steps were initiated by the financial institutions as many could neither continue to reside nor return to the UAE due to the fear of serving a jail term. However, the good news is, there is now a solution for those owing debts in the UAE.
What happens to your unpaid debt?
It was a common practice of banks in the UAE to provide credit facilities to salaried individuals based on their profile and income, but when the bad debt increased drastically, they ceased providing facilities nor could they extend such facilities after considering the credit check report and Debt Burden Ratio (DBR).
Steps taken by the Bank:
Banks usually tried to contact those liable over the telephone for collection of due installments. They would use all means including threatening and presenting the signed security cheque to be encashed. They will also give the accounts to external collection agencies to visit the office and home country to collect the amount. Traditionally, banks have two options to recover the amount owed-1. File a criminal case and ask the court to decide on imprisonment or fine as stipulated by the relevant jurisdiction and 2. Initiate civil proceedings against the individuals.
Remedies available to you
Where you find yourself in a position of indebtedness to a financial organisation, the best solution is to contact the bank and explain your situation such as what made you to stop making timely installments and your desire to continue payments at a more relaxed pace. The Banks can give a discount and/or settle the outstanding debt by accepting the settlement amount. They will consider various factors while giving such discount. The other option is to face the legal consequence by serving a jail-term or paying the fine. One thing to always remember is that, throughout this period, your liability to the bank is not discharged yet and the banks will chase you to clear the debt.
How Legal Maxims can assist you:
Since its incorporation in the UAE, Legal Maxims has continuously utilized its vast experience to help many in Debt Settlement. Our client ranges from individuals to small undertakings and large corporations. As a Law Firm, we understand the legal requirements and pitfalls that should be avoided when it comes to indebtedness in any form.
Legal Maxims will represent you before the concerned bank and financial institutions to get the maximum discount and settle accounts amicably, thereby releasing you from all fear factors. If your financial situation is not good enough to settle the liabilities, we and our team of lawyers will defend the legal cases filed against you at the court of law, resulting in an end that will be beneficial to you.
What you should do:email@example.com with your details of liabilities and explain your situation. Accordingly, for each situation, Legal maxims will advise you on the best solution considering your financial situation, nature of the claim, indebtedness and court case (if any). To kick-start the process, you will be required to provide a Power of Attorney to Legal Maxims (drafted by us on your behalf) authorizing us to represent you before the banks and other organisation involved.
How much it costs you:
Legal Maxims will not charge you unless you have benefited from our service. If Legal Maxims succeeds in negotiating with the bank, which results in a satisfactory and beneficial end result only then will you be required to give a nominal fee. Generally, Legal Maxims works on no win – no fee strategy.
Benefits of engaging Legal Maxims:
Legal Maxims is well abreast of all the legal formalities prevailing in the Country and can assist you in providing the best solution. We assure you that we will get you the maximum reductions from the banks and arrive at a solution. You will need to pay the banks only after getting all the papers in writing and executed from the banks, confirming that they are willing to settle the account with a lesser amount than the outstanding balance. Legal Maxims will also ensure that no travel ban is imposed on you.
Why not Contact Us today? You have nothing to lose, but everything to gain.