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 police action and legal charges; international debt collection agencies will chase you endlessly and you could be imprisoned if you were to come back to the country. Furthermore, the authorities even hold the right to detain and arrest passengers with unpaid UAE debt at the airport while transiting through.
The UAE has bilateral ties with many countries to deal with defaulters and local legal judgements can be enforced outside the country as well.
Preparing yourself before you exit the UAE and knowing how to manage outstanding debts from overseas is important. While servicing a UAE debt from abroad may seem challenging, it doesn’t have to be. Here are some easy ways to get you sailing through your liabilities.
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Keep Your Lender Informed
When it comes to a good relationship between a borrower and lender, communication is key. 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, your intention of settling the UAE debt and your readiness to work with them to find a mutually acceptable repayment plan.
Discuss Terms of Settlement
Negotiating settlement with your bank is always a better option than letting them assign your case to a debt collection agency. While banks are more forthcoming to amicably settling outstanding payments, debt collectors are not always open to negotiations.
Banks will give you every opportunity to resolve your arrears. 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. While this is a great deal from a purely financial perspective, it might be difficult if you have suffered a financial setback. In such a case, you could request restructuring your debt, lower settlement or convert your debts into a fixed- interest loan and extend the tenure.
Remember, it is essential to keep a written record of all communication with the bank.
Hire Legal Representation
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. A qualified representative could also approach the bank on your behalf if the bank has filed a police complaint against you and ensure all legal charges are dropped once you reach an agreement.