Picture for illustrative purposes only. ARCHIVE

Dubai-based lawyer Barney Almazar answers the most common questions regarding your legal options in various cases related to living and working in the UAE.

A reader asks: I’ve worked in Dubai for 10 years and defaulted on my credit card for eight months due to financial hardship. The bank says they’ve filed an execution case, and I’m scared to respond. I can’t pay the full amount. What’s the best way to settle my debt and prevent the case from progressing? Atty. Barney says: Communicate with your bank and ask for restructuring of payment. During the negotiation, find out the breakdown of the fees being charged to you. How much is the principal, interests, penalties and fines? Some fees can be waived or reduced depending on your contract. Prioritize reducing the total amount payable and not the monthly payment. Once the outstanding amount and terms of payment have been agreed, your bank will prepare a Settlement Agreement for you to review and sign. It is important that you should have the signed Settlement Agreement first before making any payment to the bank. As for the execution case, you should inform the court that you are coordinating with the bank to settle the outstanding payment. Do not ignore the notifications sent by the court as this will escalate the matter without your side being heard by the judge.
This column also appears in the Expat Media Special Edition magazine. Do you have a question for Attorney Barney? Contact him at barney@gulflaw.info or know more about him here. Barney Almazar is a director at Gulf Law in the UAE, Philippines, UK and Portugal. He is a member of the Philippine Bar and holds a UAE legal consultancy license. He is listed by Thomsom Reuters as one of the Super 50 lawyers in the Middle East and North Africa. Asian Legal Business has ranked him as top lawyer in the Philippines, Southeast Asia and Middle East.
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