Insolvency

Insolvency occurs when a company or individual is unable to meet financial obligations and repay debts. The UAE’s Insolvency Law for Individuals (Federal Decree-Law No. 19 of 2019) and Bankruptcy Law for Businesses (Federal Decree-Law No. 9 of 2016) provide mechanisms for debt restructuring, preventive settlements, and liquidation. The law aims to protect creditors’ rights while allowing businesses to recover from financial distress, particularly in cases of corporate debt, unpaid loans, and commercial disputes. Insolvency proceedings in the UAE are overseen by courts, financial regulators, and appointed insolvency experts.

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This article is intended for general informational purposes and does not constitute legal advice. The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advice to ensure the best possible solution for your individual circumstances.

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ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.

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Insolvency

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