Hi Steve, I am a resident of Dubai and have been here for around 2 years. I used to work for one airline where I took out a loan for 60,000 aed and a credit card of 12,000 aed. I since moved airlines and was sacked from this job as I was sick in my probation. Since then my loan amount is now 50,000 and credit card still the same amount as my payments are eaten up in charges etc. I am still here but do not have a job and its been about a month and a half, I cant afford my repayments. Ive been told that if I dont pay that I will get a police case on me. I know this will happen and not just a threat, but I have no idea what to do moving forward. I can afford the bills, and am trying to find a job but no idea if one thing is going to effect the other especially if I get a police case on me and do you know what happens if I get one? I can sleep with worry, and am desperate for any advice, do you think I should ask family to lend me the money, my f amily doesnt have it though Im sure and would just worry them and surely put them into debt. Please any advice would be appreicated.
Do you have any advice on what to do?
Do you know what happens in a police case situation?
Being in debt in Dubai is a difficult situation. There are few, if any good options for dealing with the debt and that’s why the creditors take such a tough stance.
Recently there was a debt settlement fund announced but it is my understanding it is only for UAE citizens and not residents. See Citizens’ Debt Settlement Fund Pays to Settle Debts of Citizens in UAE.
You are correct to note that a creditor could file a police case against you and in that case it could lead to your arrest and jail time.
Consumer bankruptcy does not exist in Dubai or the UAE. Basically, unless you can negotiate a suitable repayment arrangement with the creditors you have two primary choices.
- You can stay in Dubai and continue to look for a job and then make repayment arrangements with your creditors. This path risks a police case being filed against you and you being potentially stopped at the border and not permitted to leave.
- You can leave Dubai now and go back to your home country and try to find another way to earn a living. Then, when you can, you can contact the banks back in Dubai and try to negotiate a way to repay your debt.
I realize that both approaches have their pros and cons but only you can decide what to do. You can stay and work hard to make things better or leave the country now while you still can.
Please post your responses and follow-up messages to me on this in the comments section below.