Judges and legal persons affirmed that the state is keen on protecting the rights of all parties to the various transactions by enabling debtors to fulfill their obligations over a longer period of time, continuing their business, and not having to leave the country as a result of the failure of their business, through bankruptcy law No. (9) of 2016, Which represents since its entry into force a glimmer of hope in many cases for entrepreneurs who face difficult financial challenges, in addition to providing them with protection in the market, facilitating doing business, and making Dubai a city that enjoys sustainable economic growth and the preferred destination for investment.

They said during a discussion session organized by the Dubai Judicial Institute from a distance, on bankruptcy law, under the title "Features of change in addressing debtor defaulters and the rights of creditors in the United Arab Emirates", that bankruptcy means "moving from a state of ease to a state of hardship", while law scholars define it In a convention that “a way of execution on the debtor the trader who stops paying his commercial debts, and its provisions aim to liquidate the debtor’s money, and distribute the proceeds of the liquidation to creditors fairly without giving preference to one creditor over another, as long as his right is not accompanied by one of the legal reasons that justify the preference as a mortgage or Excellence".

They added during the session that Judge Ahmed Karma managed, that there are different types of bankruptcy, including bankruptcy by fraud, such as bad intent, escape, fraud, debt forgiveness, and bankruptcy default due to great adventure, impulsivity and recklessness, and the third type was called "bankruptcy in good faith", due to external circumstances Such as general and global crises, and force majeure and special circumstances.

They pointed out that there are effects of the ruling on declaring bankruptcy in some laws, including requiring the bankrupt not to be absent from his place of residence, the permissibility of placing him under surveillance, and depriving him of political and civil rights until he is rehabilitated. Some laws prohibit the bankrupt from managing his money and disposing of it, whether it is his property at the time the judgment was issued, or what his property has become after the judgment.

Restrictions arise on the right to litigate. After a judgment of bankruptcy is issued, it is not permissible to initiate or proceed to a lawsuit from the bankrupt, except for some exceptions. Moreover, most of his actions that occurred after the date of cessation of payment and before the month of bankruptcy or not Being considered in the face of the group of creditors, as well as the fall of all terms of debt.

They clarified that Article (655) of the previous Emirati Commercial Transactions Law states that “the court determines in the ruling on bankruptcy a temporary date to stop payment, and orders that seals be placed on the debtor’s commercial premises and appoint a trustee for bankruptcy,” noting that the most important forms of assistance to the debtor are difficult to avoid Liquidation of its project, protective conciliation, restructuring, new financing, project management, reducing the role of the judiciary, and support and assistance to the group of creditors.

In addition, and around the session, the Director General of the Dubai Judicial Institute, Judge Dr. Jamal Al-Sumaiti, said that the session comes within the framework of an initiative launched by the Institute in line with the precautionary measures and measures announced by the government of the UAE, to reduce the outbreak of the Corona virus, with the aim of supplying all segments of those interested in knowledge Necessary that helps them to move forward in their studies, in addition to developing their skills and abilities to fully carry out their roles and tasks.

Rich discussions

The director of the Rehabilitation and Training Department at the Dubai Judicial Institute, Al Anoud Al Hammadi, said that the main goal of the seminars and discussion sessions is to stay in constant contact with the scholars, researchers and those interested in legal affairs and the judiciary.

She pointed out that the idea attracted increasing numbers of participants, who contributed to enriching the discussions, and helped to address the topic of the session in its various aspects.

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