Bankruptcy Services in Dubai, UAE

Bankruptcy Law, Liquidation, and Insolvency - Bankruptcy Consultants

Bankruptcy is a legal term that is used for the organization or the individuals who are not in a situation to make payments to the creditors or honor their financial obligations. Filing for bankruptcy in Dubai, UAE is a legal procedure where the individual or the business organization opts to declare themselves as bankrupt because there are not able to meet their obligation to pay off the existing debts.

Filing Bankruptcy In The UAE

In order to file for bankruptcy, the company must submit an application for protective compulsion. Here are the below documents are required to be submitted with the bankruptcy application:

• Memorandum of Association along with the details of the debtor’s assets and detailed statements of debtor’s employees as well
• Copy of the accounting books of the debtor’s business
• Certificate copy of the commercial license

Along with the documents, you must submit a report that includes the details of the projected cash flow, profits or losses for the upcoming 12 months from the date of application. Also, you must submit a projected report with all the details of the outstanding debts from the creditors to ascertain the total outstanding liability.

The motive behind filing bankruptcy with the courts is to secure the standing position of the debtor but also to keep in mind the interests of the creditors. Due to this, the details of the assets of the debtors are also kept into consideration because they might be used for settling the dues with the creditors.

When the application for bankruptcy has been filed, there could be the below possible outcomes:

• Protective Composition Procedure – This option applies to companies and businesses that are struggling with their finances but are not on the verge of insolvency. The protective composition needs to be applied within 3 years of the order
• Restructuring of the debtor – This option is given to those companies that are insolvent but have a possibility that they can be rescued. The restructuring plan is devised by the debtor along with its trustee within 3 months of the date of the decision
• Declaration of bankruptcy and filing liquidation – When there is no resort for survival for the business, the court declares bankruptcy and ask the business to go into liquidation. Strict guidelines are to be followed by the business filing for bankruptcy.

Bankruptcy services in Dubai, UAE

Reyson has a team of experts that handles and provides bankruptcy services in Dubai, UAE. Filing for bankruptcy could be a tedious task. Hence, it is important that a facilitator is hired by the business that would assist your company to comply with all requirements that need to be followed while filing for bankruptcy. Connect with us to know more on bankruptcy services in UAE.