Dubai court declares Gulf national insolvent over Dhs265,364 debt

The Dubai Civil Court has declared a Gulf national insolvent after it was established that he owed a bank Dhs265,364 and was unable to meet his financial obligations or make payments on time, with no funds available to settle the debt.

The ruling was issued following the completion of debt auditing procedures in accordance with the insolvency law.

The court clarified that the insolvency trustee had taken all necessary measures, including examining documents, verifying their authenticity and preparing a detailed report on the debtor’s financial status.

The trustee’s report concluded that no amounts or assets were available for liquidation, rendering liquidation procedures unbeneficial to creditors. Consequently, the court issued an insolvency declaration and approved the list of debts owed to the bank, while deeming other claims invalid as they were not submitted within the specified deadline.

The ruling also included restrictions preventing the debtor, for a period of three years, from obtaining financing or entering into new financial obligations, except within the limits of basic living expenses. In addition, his name will be listed in the credit registry for insolvency cases, and the judgment will be published in two widely circulated local newspapers.

The GCC national’s legal representative, Dr Alaa Nasr, stated that the insolvency law preserves creditors’ rights to officially prove their debts, while simultaneously protecting debtors from multiple prosecutions and placing their financial situation under organised judicial management.