A Dubai civil court has officially declared a Gulf national insolvent after determining that he is unable to settle accumulated debts totaling Dh2.56 million owed to seven creditors, including banks, private individuals, and housing finance institutions.
The court approved the insolvency petition and appointed a licensed insolvency trustee to examine the debtor’s financial standing and manage the proceedings.
Court records show that the debtor sought insolvency protection after submitting certified documents proving his inability to meet his financial obligations. He told the court that he is currently unemployed and has no regular income, aside from a Dh4,000 monthly allowance received from the Zakat Fund. He also confirmed that he owns no assets that could be sold to repay his creditors.
Following the filing, the court tasked a trustee with reviewing the debtor’s liabilities. The trustee’s report revealed that the largest outstanding obligation was a Dh1.487 million balance from a housing loan originally valued at Dh2 million.
Additional debts included several personal and commercial liabilities, ranging from tens of thousands of dirhams to amounts exceeding Dh500,000, all of which had remained unpaid for years. The trustee confirmed that no repayments had been made to any creditor.
In its ruling, the court explained that insolvency proceedings require public notice of the case, allowing creditors a fixed period to submit claims. Once claims are reviewed and verified, the trustee submits a final assessment to the court, which then decides on the acceptance of each claim based on supporting evidence.
The debtor’s legal counsel said the insolvency law is designed to help individuals manage overwhelming debt by suspending enforcement actions, halting lawsuits, and allowing court-supervised settlements, provided the debtor fully cooperates and acts in good faith throughout the process.
