Dubai Civil Court has declared a Gulf national insolvent after finding that he owed three banks a total of Dh1.029 million but had no assets available to repay the debts.
The court ordered the termination of the insolvency proceedings and barred the man from obtaining new loans or financing for three years, in accordance with the legal provisions governing insolvency.
The decision followed a report by the insolvency trustee, which found that the debtor had no funds or properties that could be liquidated to settle his outstanding liabilities.
The debtor had obtained bank financing worth Dh550,000 in November 2024, with monthly instalments of Dh13,000. After he stopped making payments, the financing bank presented a cheque for Dh550,000 in September 2025, but it was returned because of insufficient funds. The bank’s claim subsequently reached Dh555,000.
In May 2025, the man also secured a personal loan of Dh395,000 from another bank, requiring monthly instalments of Dh9,257. He had additionally accumulated credit card debts with two other banks, with the outstanding balance on one card reaching Dh80,000. The total debt recognised by the court amounted to Dh1,028,980.
Court documents showed that the debtor held a government job and earned a gross monthly salary of Dh20,645. However, the combined monthly installments on his two loans alone totalled Dh22,257, exceeding his salary before accounting for credit card payments and everyday living expenses.
The debtor told the court that he spent approximately Dh21,000 a month supporting his family. The documents also established that he owned no property registered in his name, held no trade licences and had no shares listed on the Dubai Financial Market. He lived with his family in a property owned by another person.
An examination of his bank accounts revealed only limited balances. His sole identified vehicle was a 2011-model car, which the court considered necessary for his personal use and daily living.
The insolvency trustee concluded that there were no assets available for liquidation and that the balances in the debtor’s bank accounts did not exceed what was required to meet his basic needs. The court consequently found that further liquidation proceedings would serve no purpose and declared him insolvent before terminating the case.
The debtor’s legal representative, said insolvency decisions involving financially distressed individuals were based on a comprehensive assessment of their financial circumstances, including their debts, bank balances and available assets.
Such proceedings often establish that a debtor cannot meet financial obligations and has no assets that can be liquidated to repay creditors, he said.
Declaring an individual insolvent is a judicial process intended to regulate the debtor’s legal position under the applicable rules. The resulting statutory restrictions remain in force for three years, while the individual’s basic needs and family responsibilities are taken into consideration, he added.
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