I’m a filipino currently employed here in Dubai. going for 2 years. I have some personal loans & credit cards here in Dubai. Before, everything is fine because overtime is open in our dept. which makes my earnings more adequate to my expenses & i still can manage all my financial obligations. Then the economic crisis affects our company, our overtime hours has been lessen & almost suspended at all. Now, my basic monthly salary cannot support my monthly obligations paying the banks & sending money back home. I have also tried negotiating with the banks, and their response is that, they can only help who had lost their jobs. Im very afraid that maybe a month or two, i would start defaulting. I also cannot see any hope in our company bringing back the opportunity to have overtime since we are deeply affected by the crisis. Im planning to runaway and go back to my country while i still have a time, to avoid embarrassment if im gonna be jailed.
Is there any chance that im gonna be arrested or jailed in my own country in running away with my debt, with the help of local authorities, particularly in Phillipines? Are the banks & financial institutions here in UAE can manage to sue me in my country?
Thanks, your advise will be a big help.
The reason we talk about actually going to jail in Dubai for debts is because if you fail to pay your debts in Dubai, you do go to jail until you can pay off the debt and get out of jail. From all the research I have done there does not appear to be any middle ground that would allow you to pay less than the amount due and stay out of trouble with your creditors in the UAE.
I can’t believe in this modern age that a debtor prison still exists, but apparently it does in Dubai. And there are no personal bankruptcy laws on the books so that option is out.
From everything that I have read and learned, if you see that you will imminently fall behind on your bills, your are the citizen of another country, and you do not plan to come back to an gulf GCC country again, then leaving Dubai is a reasonable solution to avoid imprisonment.
I can’t think of any stories from people that were sued back in their home country or the Philippines for old Dubai debt. Of course, i suppose if a UAE bank wanted to spend time and money to deal with you back home, it is possible, but not profitable for the bank.
All of that being said, it would not hurt you to seek the advice of a lawyer in Dubai to confirm everything I’ve said.
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