Bounce checks will no longer mean jail term with the new insolvency law that was announced earlier this week, Ministry of Finance (MoF) , UAE said on Tuesday.
Approved by the UAE Cabinet, the insolvency law is applicable to both citizens and expatriates, providing them with a structured payment plan to settle their debts. Under the new law, a civil court will appoint financial experts to assist debtors in finding a way to pay their debts, with the final settlement also involving the creditor once the court approves the plan.
Most importantly, the new law will ensure that no legal action will be taken against the debtor once they invoke their insolvency status and begin the process of restructuring their financial payments, during which time they will be allowed to continue working normally as well as taking bank loans if approved by the court.
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