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New Law For Debtors In UAE 2023 – Legal Consultant

new law for debtors in uae

In a significant legal shift, the United Arab Emirates has introduced a new law for debtors in UAE that stands to redefine how debtors are treated within its legal system.

This transformative change places a strong emphasis on protecting the rights and dignity of debtors.

In this article, we’ll unpack the key aspects of this new law and explore what it means for debtors in the UAE.

Office of Al Mulla. Whatsapp: Click here. Phone: 00971501961291.

New law for debtors in UAE.

This new legal principle marks a significant departure from the conventional approach to debtor-creditor relationships.

It aims to ensure fairness and uphold human dignity. Let’s break down the essential elements of this pioneering legal framework in simple terms:

  • Who Bears the Proof Burden?
    Under the new law, creditors must now prove a debtor’s insolvency before they can be imprisoned for unpaid debts. This means that the responsibility is now squarely on the creditor’s shoulders to show that the debtor genuinely cannot afford to pay their debts.
  • Preventing Hiding and Running.
    The law addresses situations where debtors try to hide their assets or escape with them to avoid paying their debts. In these cases, imprisonment may still be a possibility, but only if there’s strong evidence of wrongdoing. This ensures that fraudulent actions are dealt with properly.
  • Unresolved Agreements.
    If there is an unsettled agreement between a debtor and a creditor, and the debtor stops making payments as specified in the settlement, legal actions may follow. However, imprisonment is considered a last resort, with a focus on treating debtors fairly.
  • Investigating First.
    Before any decision is made to seize and bring in a debtor, a preliminary investigation is a must. This step is vital in ensuring that there’s a good reason to take legal action against the debtor, preventing any unjust imprisonment.

Best lawyer for debt cases.

Navigating the complex world of debt-related legal matters in the UAE can be daunting.

This is where Al Mulla, a highly respected lawyer and legal consultant, comes into play.

He is known for his expertise in handling debt cases in the UAE, making him the top choice for anyone facing such legal challenges. With his guidance, you can be sure your rights will be protected, and your case handled with professionalism.

FAQs about new law for debtors in UAE.

Under the new law, creditors are responsible for proving a debtor's insolvency before considering imprisonment for unpaid debts.
Debtors may face imprisonment in the UAE if they attempt to hide assets or flee, or if they breach payment terms in unsettled agreements.
A preliminary investigation is necessary to ensure there is a valid reason to initiate legal action against the debtor, preventing unjust imprisonment.
Al Mulla is a renowned lawyer and legal consultant known for his expertise in handling debt cases, making him the top choice for such matters in the UAE.


The new law for debtors in the UAE, with its focus on assuming debtor insolvency over solvency, marks a significant stride toward safeguarding debtor rights and dignity.

By shifting the responsibility of proof to creditors, addressing fraudulent actions, and stressing the importance of initial investigations, this law ensures fair treatment for all parties involved.

The presence of Al Mulla as a trusted guide in this legal landscape further underscores the commitment to justice and respect for individual rights and dignity, setting a commendable precedent in the face of financial challenges.

Contact the office of Al Mulla via Whatsapp. Click here. You can also call us on phone: 00971501961291.

Read about Legal Advice Dubai Best Services UAE 2023.

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