avoid bankruptcy in UAE

Avoid bankruptcy in UAE; Our Abu Dhabi bankruptcy lawyers advise about the Protective reconciliation Procedure; – Protective composition Procedures;

; instead of bankruptcy in UAE.

If the Debtor can still run his business, he can proactively move before his creditors start the bankruptcy procedure.

Bankruptcy law no (9) for 2016, whereas article 5 states;

Article (5)

The reconciliation procedure provided in this Chapter aims to assist the Debtor in reaching settlements with its creditors through a protective composition plan;

A debtor will conclude this settlement under the supervision of the Court;

Provided that, with the assistance of a composition trustee appointed under the provisions of this Chapter.

 

Furthermore, Article (6) of the same law stipulates;

 

  1. Only the Debtor has the right to apply to the Court to commence the Protective Composition Procedure where it is experiencing financial hardship and requires assistance to reach settlements with its creditors.
  2. The Court shall accept the application for Protective Composition only if the Debtor is not in a state of Cessation of Payment for more than (30) thirty consecutive Business Days as a result of the disorder of the Debtor’s financial condition and if the Debtor is not Over-indebted.

That means that if a debtor Faces a temporary financial hardship, he has the right to submit a petition to settle with his creditor;

Besides, the Court will give him an assist to overcome this financial ordeal.

 

For more illustration

 

Legal advice

 

For illustrations:-

https://ezz4law.com

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