Can individuals and businesses declare bankruptcy to address unmanageable debts in Dubai?
In Dubai, both individuals and businesses have options for addressing unmanageable debts, but the concept of bankruptcy may differ from that in some other jurisdictions. Dubai's legal framework offers mechanisms for individuals and businesses to seek debt relief and financial restructuring when facing insurmountable debt burdens. Here's an overview of how individuals and businesses can address unmanageable debts in Dubai: For Individuals (Personal Insolvency): Out-of-Court Settlements: Individuals with unmanageable debts can explore out-of-court settlements with creditors. This involves negotiating with creditors to agree on new repayment terms, including extended timelines or reduced interest rates. Debt Restructuring Plans: The Dubai Courts offer debt restructuring plans for individuals who cannot reach an agreement with creditors through out-of-court negotiations. These plans aim to help individuals manage their debts while avoiding bankruptcy. Mediation: Mediation services