Leaving the UAE with debt will result in criminal charges - here’s what to do...
If you find yourself struggling with debt, absconding is not the solution. Non-payment of debt is a criminal offence in the UAE and the list of penalties and repercussions of debt evasion is unending.
You would be facing legal charges and international debt collectors. Furthermore, the authorities could detain you at the airport and bilateral agreements mean legal enforcements can be applied outside the UAE.
If you had to leave the country for any reason, informing your creditors should be the first thing to do. You must inform them of your changed situation and your intention of settling the UAE debt with mutually agreeable terms.
Negotiating settlement with your bank is always a better option than them assigning your case to a debt collection agency. While banks are forthcoming to amicably settling outstanding payments, debt collectors are not always open to negotiations.
In line with their easy debt settlement strategy, banks would normally ask you to pay a lump sum towards your debt settlement and offer to waive off late payment penalty and some or all of the interest in return.
If this isn’t possible, you could request restructuring your debt, lower settlement or convert your debts into a fixed- interest loan and extend the tenure.
It is a good idea to hire a reputable legal representative to help you negotiate with creditors for a fair settlement, create a manageable settlement plan and regain control of your financial footing. They can also contact the bank on your behalf.
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