A few of the recent revisions that will aid in easing debt are as follows:
- Those who are now in debt or anticipate becoming in debt soon may be eligible for legal assistance.
- Put UAE borrowers on a 3-year repayment schedule with professional assistance to assist them in repaying their debts.
- In order to shield debtors from legal action, offer them opportunities to work and contribute. This will help them provide for their families, especially if the borrower is the only source of income for the household.
- Stop debtors from picking out new loans until directed to do so by the court.
Impact of the amendments
Both locals and legal experts applauded the UAE debt law changes for their positive impact on society. If foreigners or Emiratis in Dubai are unable to pay back their credit card bills or other outstanding debts, they are no longer at risk of going to jail. With the support of the UAE government, these people have the opportunity to pay off their debt (s).
As stated in Article 17(8) of the 2021 Legislative Regulations, if the conditions for a payment order are satisfied and the supervising case handling judge has the authority to issue one, a payment order may be issued throughout the case supervision phase of ordinary civil proceedings. By successfully resolving disputes at the case supervision stage, before significant legal expenses and a drawn-out litigation phase are invested, these reforms may be extremely beneficial to creditors.
In addition, the Executive Regulations for 2021 state that judges in ordinary civil proceedings are now permitted to render decisions even in the absence of a payment order. Because of the potential for payment orders, creditors shouldn’t continue to be anxious that their claims would be rejected in conventional court proceedings.
Judicial Proceedings
A lawsuit will be brought if the debtor doesn’t comply. The case required the involvement of a debt recovery lawyer because judicial proceedings in the United Arab Emirates are done solely through written communication. After carefully reviewing the cases of both parties, the court will make a decision.
In keeping with the regular court system, the 2021 Regulations take a big step towards increasing the usefulness of orders to pay for creditors, even though it seems that they are presently available.
