The UAE issued Insolvency Law No. 19 of 2019 on 29 August 2019. The Law comes into force three months after publication meaning it will become effective on 29 November 2019 (the “Insolvency Law” or the “Law”).
It will help those struggling with chronic debts by decriminalizing their liabilities and allowing them to either settle their financial obligations through a court-approved payment plan or insolvency and the liquidation of their assets.
The Federal Decree-Law on the Insolvency of Natural Persons is different to the bankruptcy law of 2016 as it applies to individuals rather than companies. The proposed law offers debtors two ways to solve their financial struggles: either they settle their debts financially by devising a repayment plan through a court-appointed expert that allows the debtor to repay their dues while still working, or they can liquidate their assets to repay their creditors.
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