Dubai Court Declares Gulf National Insolvent Over Dh2.56M in Unpaid Debts

The Dubai Civil Court has declared a Gulf national insolvent after establishing that he is unable to repay outstanding debts totalling Dh2.56 million owed to seven creditors, including banks, individuals and housing finance entities.

The court accepted the insolvency application in both form and substance and appointed a specialised trustee to assess the debtor’s financial position.

According to case records, the debtor sought a declaration of insolvency, submitting official debt certificates to show that he could no longer meet his financial obligations. He told the court that he is currently unemployed and has no source of income other than a monthly allowance of Dh4,000 received as financial assistance from the Zakat Fund, as reported by Al Khaleej. He also confirmed that he owns no assets that could be liquidated, in whole or in part, to settle the debts.

An insolvency trustee was appointed to review the liabilities and prepare a detailed report. The trustee confirmed that the debtor had taken a housing loan of Dh2 million, with Dh1.487 million still outstanding to one bank.

Additional liabilities included about Dh43,000 owed to one individual, a Dh243,000 loan owed to another person, and Dh105,000 arising from a commercial enforcement case.

Further debts comprised Dh500,000 owed to a citizen under a commercial enforcement file, Dh150,000 established under a general enforcement claim, and Dh30,500 linked to a cheque enforcement case. The trustee noted that all the debts dated back several years and that the debtor had been unable to make any repayments.

In its reasoning, the court outlined that the insolvency law sets out procedures for reviewing debts and accepting creditor claims. These include publishing the decision to open insolvency proceedings and liquidate assets in two daily newspapers, inviting creditors to submit claims within 20 working days. After the deadline, no further claims are accepted.

The trustee then conducted a final review and submitted a comprehensive report on the debtor’s financial position to the court within 10 working days. Based on this report and the evidence presented, the court determined which claims were accepted.

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