At RAALC Law Firm, we provide a comprehensive range of legal services to assist businesses in restructuring or turnarounds. Our bankruptcy lawyers have extensive experience in all aspects of bankruptcy proceedings, from advising on the duties and liabilities of directors and officers to negotiating standstill and support agreements, creditor mediation, debt rescheduling and security.
We will also assess the merits of any proposed restructuring arrangement to ensure that it is achievable and that it meets the requirements of the law. Our team is well versed in UAE business regulations and can provide advice on how to protect assets and minimize losses.
If you are facing financial difficulties or are considering filing for bankruptcy, it is important to seek the advice of an experienced bankruptcy lawyer in the UAE. An experienced lawyer can help you understand your rights and obligations under the Bankruptcy Law, as well as provide advice on how to best navigate the process.
Preventive composition is widely used in bankruptcy proceedings and are seen as a way of avoiding a full bankruptcy. This is done by allowing the debtor to make an agreement with the creditor and come to an understanding regarding the repayment of the debt. This approach is available to debtors who have not defaulted on their payments for more than 30 days. It requires the debtor to make an application to the court, once this application is approved a trustee will be appointed for preparing a composition plan. The plan is thereafter, presented to the creditors for their approval. Upon creditors’ approval, the court implements the composition plan. This allows the debtor to remain in business and restructure their debt in a comprehensive manner.
Preventive composition in bankruptcy helps businesses that are struggling financially but still have potential for growth. By restructuring their debt and creating a budget and financial plan, businesses can become more profitable and stable while avoiding the costs associated with filing for bankruptcy.
After the court approves the bankruptcy application and the suspension of all executive proceedings, the debtor can now formally restructure the debt owed. This process involves the debtor and the creditors agreeing to new terms and conditions for the repayment of the debt. The new terms and conditions are then submitted to the court for approval, and if approved, the debt is now restructured and a payment plan is established that must be followed by all parties involved. This payment plan is usually monitored by a court-appointed trustee who ensures that all parties involved are abiding by the terms of the restructuring.
If the debtor does not wish to proceed with the restructuring procedure, the court may declare their company bankrupt and order the liquidation of assets according to Article 124(3) of UAE Bankruptcy Law. The court has the authority to declare the debtor bankrupt and order the liquidation of assets if the debtor is not amenable or comfortable with the restructuring procedure in place or if the trustee’s report confirms the impossibility of creating a viable restructuring plan. Furthermore, if the debtor is unwilling to proceed with the restructuring procedure or fails to perform their obligations in a timely manner, it could lead to the court’s declaration of bankruptcy.
Bankruptcy in the United Arab Emirates is a process that is regulated by the UAE Bankruptcy Law No. 9 of 2016. This law provides for a comprehensive framework for the restructuring and insolvency of companies, partnerships, and individuals.
In the event of a bankruptcy, the court will assign a bankruptcy trustee to the case. The bankruptcy trustee is responsible for collecting the debtors’ assets, evaluating their liabilities, and then distributing the assets to creditors according to the priority established by federal bankruptcy law. During this process, the trustee must also ensure that all claims against the debtor are accurately documented, as well as ensuring that all legal requirements are met.
Bankruptcy can be an intimidating process but it can also provide relief from overwhelming debt. If you are considering filing for bankruptcy in the UAE, it is important to understand all of the laws and regulations that apply to your situation and seek professional advice from a qualified bankruptcy lawyer in the UAE.
Business bankruptcy can be a difficult and complex process. RAALC can help you navigate the process and ensure that you are making the best decisions for your business. We have experienced attorneys who understand the laws surrounding business bankruptcy, and we can provide advice and guidance to help you make the best decisions for your business.
Bankruptcy and liquidation are two different legal processes that may be used by businesses that are no longer able to pay their debts. Both bankruptcy and liquidation involve the sale of a business’s assets to pay off its debts, but they differ in terms of the process and the legal protections that are provided to the business and its owners.
In the United Arab Emirates (UAE), bankruptcy is governed by Federal Law No. (9) of 2016 Concerning Bankruptcy. This law applies to all businesses operating in the UAE, regardless of their legal form or the nationality of their owners. Under the bankruptcy law, businesses that are unable to pay their debts may be declared bankrupt by a court and placed under the supervision of a bankruptcy trustee, who is responsible for managing the business’s assets and liabilities during the bankruptcy process. The goal of bankruptcy is to allow the business to restructure its debts and continue operating, if possible.
Liquidation, on the other hand, involves the sale of a business’s assets and the distribution of the proceeds to its creditors. Liquidation may be voluntary (initiated by the business itself) or involuntary (initiated by the creditors). In the UAE, liquidation is governed by the Commercial Companies Law and the Civil Code, which set out the procedures for winding up a business and distributing its assets. The goal of liquidation is to bring the business to an end and settle its debts.
It is not possible to determine definitively which option is better in the UAE without more information about your specific circumstances. Both bankruptcy and liquidation can have significant consequences for a business and its owners, so it is important to carefully consider all of your options and seek the advice of a qualified legal professional before making a decision.
Gather the necessary documents: Certain documents, such as financial statements, contracts, and other relevant documents, must be provided to support the bankruptcy application.
Prepare the bankruptcy petition: A bankruptcy petition outlining the individual’s financial situation and the reasons for their inability to pay debts must be drafted.
File the bankruptcy petition with the court: The bankruptcy petition must be filed with the court that has jurisdiction over the individual’s business.
Serve notice of the bankruptcy petition: Notice of the bankruptcy petition must be served on the individual’s creditors, as well as any other parties that may be affected by the bankruptcy.
Attend a hearing: The court will hold a hearing to consider the bankruptcy petition. At the hearing, the individual will need to present evidence in support of their petition and answer questions from the court and their creditors.
It is important to note that bankruptcy is a legal process that can have significant consequences for the individual’s business and its owners. Therefore, it is recommended that they seek the advice of a qualified legal professional before filing a bankruptcy application in the UAE.
Declaring bankruptcy can have a number of negative consequences, both for the individual or business that is filing for bankruptcy and for their creditors. Some of the potential negative consequences of declaring bankruptcy include:
Damage to credit score: Filing for bankruptcy can have a significant negative impact on the individual’s credit score, which can make it more difficult and more expensive for them to borrow money in the future.
Loss of assets: Depending on the type of bankruptcy that is filed, the individual may be required to sell off certain assets in order to pay off their debts. This can include valuable possessions such as their home, car, or other personal property.
Loss of control: When bankruptcy is filed, the individual may lose control of their finances to a bankruptcy trustee, who is responsible for managing their assets and liabilities during the bankruptcy process.
Legal fees: Filing for bankruptcy can be a complex and expensive process, and the individual may be required to pay legal fees and other costs associated with the bankruptcy process.
It is important to carefully consider the potential negative consequences of declaring bankruptcy before making the decision to file. In some cases, bankruptcy may be the best option for resolving financial problems, but in other cases, there may be other options that may be more suitable. It is always a good idea to seek the advice of a qualified legal professional before making a decision about bankruptcy.
In the United Arab Emirates (UAE), bankruptcy is a legal process through which an individual or company that is unable to pay its debts can seek relief from its creditors. The UAE has a federal bankruptcy law, which applies to all of the emirates, including Abu Dhabi and Dubai.
There are two main types of bankruptcy in the UAE: individual bankruptcy and corporate bankruptcy.
Individual bankruptcy: If an individual is unable to pay their debts, they can file for bankruptcy. In order to do so, the individual must be unable to pay their debts as they become due and must not have sufficient assets to cover their debts. If the individual’s bankruptcy petition is accepted, the court will appoint a bankruptcy trustee to manage the individual’s affairs and to sell their assets in order to pay off their debts.
Corporate bankruptcy: If a company is unable to pay its debts, it can file for bankruptcy. In order to do so, the company must be unable to pay its debts as they become due and must not have sufficient assets to cover its debts. If the company’s bankruptcy petition is accepted, the court will appoint a bankruptcy trustee to manage the company’s affairs and to sell its assets in order to pay off its debts.
If you are considering bankruptcy in the UAE, it is important to seek legal advice from a qualified bankruptcy lawyer to ensure that you understand your options and the implications of bankruptcy.
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