How to file Debtor-based bankruptcy case in the U.A.E

 Bankruptcy proceedings in the UAE are governed by Federal Decree-Law No. 9 of 2016, known as the Bankruptcy Law. The law provides for a number of different restructuring and bankruptcy procedures, depending on the specific circumstances of the debtor.

Debtor-led bankruptcy filings in the UAE are on the rise. In 2021, there were over 1,000 debtor-led bankruptcy filings, which was an increase of 20% from the previous year. This trend is expected to continue in 2023, as the UAE economy recovers from the COVID-19 pandemic.

 There are a number of reasons why debtor-led bankruptcy filings are on the rise in the UAE. One reason is that the UAE government has made it easier for businesses to file for bankruptcy. The UAE Bankruptcy Law, which was introduced in 2016, provides several options for businesses that are struggling to repay their debts. These options include financial restructuring, composition procedures, and liquidation.

 Another reason for the rise in debtor-led bankruptcy filings is the increasing cost of doing business in the UAE. The cost of rent, labor, and other expenses has been rising in recent years, making it difficult for some businesses to turn a profit.

 The COVID-19 pandemic has also had a negative impact on many businesses in the UAE. The pandemic caused a sharp decline in economic activity, which led to a decrease in sales and revenue for many businesses. As a result, many businesses have been unable to keep up with their debt repayments.

 The rise in debtor-led bankruptcy filings in the UAE is a positive development. It shows that the UAE government is committed to providing businesses with the support they need to recover from financial distress. It also shows that the UAE Bankruptcy Law is working effectively.

 Here are some of the benefits of debtor-led bankruptcy filings in the UAE:

•  It allows businesses to avoid liquidation and continue operating.
• It gives businesses a chance to restructure their finances and become more profitable.
• It protects businesses from creditors and other legal action.
• It allows businesses to negotiate new terms with their creditors.
• It provides businesses with a fresh start.

If you are a business owner in the UAE and you are struggling to repay your debts, you should consider filing for bankruptcy. It is important to seek legal advice from a qualified bankruptcy lawyer to ensure that you understand the process and to choose the best option for your business.