Bankruptcy issues
Decree by Federal Law No. (51) of the year 2023 regarding the issuance of the Law on Financial Reorganization and Insolvency.
The United Arab Emirates has enacted new legislation under the name of the Bankruptcy Law, which enhances the protection of all parties involved, especially creditors and debtors. This law provides debtors with the opportunity to fulfill their obligations over extended periods, allowing them to sustain their businesses without the need to exit the market as a result of financial crises.
Through the decree established by Federal Law No. (51) of 2023, which created the law for financial restructuring and bankruptcy, this legislation has become a "lifeline" for many business leaders facing significant financial challenges. It has also granted investors in the Emirates a greater sense of security, as it limits the manipulation by companies that do not possess sufficient financial coverage.
The new bankruptcy law has positive effects on the economy as a whole, as it guarantees the rights of creditors and preserves the interests of distressed companies. By facilitating the procedures for registration and transfer between different economic sectors, the law also provides distressed companies with opportunities to reach a judicial settlement within a specific timeframe. Consequently, start-up companies facing financial difficulties will not have to leave the country; rather, they can legally restructure their financial situations, which contributes to the overall economic benefit and allows debtors to arrange their financial positions in a manner that serves the interests of the creditors in the end.
Lawyer Juma Al -Naqbi's office approaches bankruptcy cases
Given the importance of the changes brought about by the new Bankruptcy Law and the complexity of related cases, Juma Al Naqbi Advocates & Legal Consultants recognizes the necessity of addressing these issues with a high level of expertise and precise knowledge of financial and commercial laws, considering their significant economic impacts on companies, individuals, and creditors. Drawing from over twenty years of experience, the firm provides comprehensive legal consultancy that aligns with the requirements of the UAE market and takes into account the sensitive financial circumstances of the parties involved.
The legal system of bankruptcy
The bankruptcy system seeks to regulate the handling of financial insolvency situations through the protection of rights and the restoration of balance between creditors and debtors, via mechanisms such as debt restructuring and asset liquidation. Given the conflicting interests among the parties involved, this requires advanced negotiation skills and precise legal knowledge, which is provided by Juma Al Naqbi Advocates & Legal Consultants through a specialized team with extensive experience in this field.
The legal roles of the office in bankruptcy cases
1. Asset inventory
A thorough inventory will be conducted of the assets of the debtor, and it will be compared with the debts owed in order to create a balance that aids in making the appropriate decision.
2. Legal consultations
The attorney provides specialized consultations that clarify the available options, such as restructuring or negotiating with creditors before resorting to bankruptcy.
3. Managing bankruptcy procedures
In the event of the bankruptcy decision being made, the attorney is responsible for submitting the application and following up on the legal procedures, as well as representing the client before the court, with the aim of restructuring or settling whenever possible.
Summary
In the office of Juma Al Naqbi Advocates & Legal Consultants, we focus on studying our clients' files and applying bankruptcy law to ensure the best outcomes, while maintaining the continuity of their businesses and their financial lives in a natural manner. Through our precise legal consultations, we always aim to achieve a balance between the rights of creditors and the interests of debtors, which contributes to minimizing losses and achieving financial justice for both parties.