Man who owed Dhs707,000 declared bankrupt by Dubai court

The Civil Court in Dubai has rendered a judgment in a case concerning a Gulf national who is indebted to the amount of Dhs707,000.

The court has declared this individual to be insolvent for a period of three years, a decision which precludes him from entering into any binding commitments for that same period, with the exception of those relating to his fundamental needs.

Furthermore, the court has prohibited him from obtaining any new loans or financing.

The debtor submitted a request to the court to initiate insolvency proceedings, providing documentation that substantiated his inability to fulfill financial obligations due to personal status issues.

Subsequent to this, the court issued instructions to the insolvency trustee, directing him to commence proceedings in accordance with the case papers.

The court’s decision was published in two daily newspapers, both in Arabic and English, thereby providing creditors with a period of 20 working days from the date of publication to submit their claims.

Subsequent to the review of the claims submitted by creditors, the trustee compiled a report on the debtor’s financial status, which was submitted to the court.

This report conclusively demonstrated the absence of any funds with which to settle the debts and that the debtor had no financial resources to do so.

The court delivered a ruling that declared the debtor to be insolvent, and subsequently instructed the Case Management Office to disseminate this information to all relevant entities within the country.

Furthermore, a copy of the ruling was dispatched to the Union Credit Information Company, and the debtor’s name was formally registered within the insolvency registry.

 Dr Alaa Nasr, the person in debt’s lawyer, said that the court may take action against the person in debt if he does or tries to do several things, including running away to avoid or delay paying any of their debts.

He also said that the court could take action if he tried to avoid paying his debts by going abroad, sold any of his assets, hid or destroyed any documents or papers that his creditors could use, or sold any property he owned that was worth more than Dhs5,000 without the insolvency trustee’s permission.