# Imprisonment for debt



## chhetain (Jul 2, 2015)

Hi all
Just want to know what happens when u can't pay loans and u get jailed for months. Does serving in jail clears debts. If you really don't have money then what happens. U get banned for whole life u can't go home for whole life. 
Please help


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## cronus (Mar 8, 2014)

Imprisonment does not clear debts owed.


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## chhetain (Jul 2, 2015)

What if you don't really have money and cant pay the loan amount. Will they ban u for whole from going away from uae or what.


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## cronus (Mar 8, 2014)

Not yet. Maybe when you stop paying for two months or more. Someone might seriously advise you considering your unfortunate situation to go to your country as soon as possible get the money and then come back and pay them. That said person might equally advise you not to wait until it is too late. This is not my personal opinion though.


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## iggles (Jan 4, 2015)

What is more important to you? your freedom or paying back the loan?


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## chhetain (Jul 2, 2015)

My freedom but what if I don't have the money to pay . because all my money was invested in my home and in the recent earthquake in Nepal i lost my home totally. Now just dust remains. I m too stressed n scared. I want to repay but I can't find a hood job then how can I repay repay. Also i guess they won't let me go till my debt gets clear when I will get a new job.


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## iggles (Jan 4, 2015)

I am going to highjack this thread.

What happens if your company gives you an Advance Payment for rent, then sack you later on without it being fully paid?


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## The Rascal (Aug 6, 2014)

Two things here, the criminal offence is for bouncing the guarantee cheque, not not paying the loan. That is what you get jailed for.

The debt remains BUT it's unlikely the bank will do anything about it as they're covered by insurance and one part of the insurance is the security cheque - they need to bank it to get the insurance pay out on the loan.

HOWEVER, you still owe the money, it doesn't miraculously disappear, whether the bank will take you to court for it is unlikely in most cases - they would need to take a civil case out against you and for that they need to pay a percentage of the debt into the court and that is often seen as throwing good money after bad.

Should you do it? no-one can answer this but you, however I do know of people who run huge debts up here, buy a home in their native country (usually Philippines, Nepal or India) and do 6 months jail time, leave the UAE and never return.

It is VERY unlikely you will be deported as bouncing a cheque is not considered a major crime here. Fraud is however so you need to really think this one through.


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## The Rascal (Aug 6, 2014)

iggles said:


> I am going to highjack this thread.
> 
> What happens if your company gives you an Advance Payment for rent, then sack you later on without it being fully paid?


Being fully paid back to the company you mean?

It'll be taken out of your end of service benefits, if there isn't enough EoS then theoretically they can claim it off you before they sign your release/cancellation of your visa, however it's unlikely they would do that - what's the point?


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## iggles (Jan 4, 2015)

The Rascal said:


> Being fully paid back to the company you mean?
> 
> It'll be taken out of your end of service benefits, if there isn't enough EoS then theoretically they can claim it off you before they sign your release/cancellation of your visa, however it's unlikely they would do that - what's the point?


Oh okay - I live in fear of the being sacked whilst owing the company my advance payment for the rent. I've actually didn't sign anything for it, no contract nothing.


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## chhetain (Jul 2, 2015)

Actually they were going to terminate me but they offered me to resign myself and they told me that i will get one month salary gratuity leave salary one month etc but if terminated then nothing just a salary nograce period. So i resigned from Transguard . I have a loan of 42000 ifrom dib in which I have paid 3 installments. Now the worst part is if get a job less than 3000 then will they accept it or not coz I had job of 3700 before but now I m not sure that will they accept a lower salary or not and also the unlisted company.


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## BedouGirl (Sep 15, 2011)

chhetain said:


> Actually they were going to terminate me but they offered me to resign myself and they told me that i will get one month salary gratuity leave salary one month etc but if terminated then nothing just a salary nograce period. So i resigned from Transguard . I have a loan of 42000 ifrom dib in which I have paid 3 installments. Now the worst part is if get a job less than 3000 then will they accept it or not coz I had job of 3700 before but now I m not sure that will they accept a lower salary or not and also the unlisted company.


If I understand you correctly, you have actually been offered another job but it's paying less than AED 3000 per month and the company is not listed with your bank? Have you asked the bank these questions? I really don't think anyone on here can give you these answers or assurances.


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## chhetain (Jul 2, 2015)

No I haven't got the job yet but I m just asking like what if I don't get a job more than 3000


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## BedouGirl (Sep 15, 2011)

chhetain said:


> No I haven't got the job yet but I m just asking like what if I don't get a job more than 3000


Like I said, I don't think any of us can answer that for certain. We can say what we think but no-one can be 100% sure.


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## Stevesolar (Dec 21, 2012)

Hi,
The key is loan affordability.
How long did you borrow the money over and what are the monthly payments?
If you earn 3000 per month but the payments are 3500 then you would have a problem.
As long as you have enough money to live on after you have paid your monthly payment - then both you and the bank should be happy.
They should not be concerned what your salary is - they are more concerned that you will pay the money back.
At a push - you could also try to negotiate a longer repayment period if they will reduce the monthly payment amounts - be careful if you go down that route because banks have a habit of rolling up the interest and then giving you another loan which also has interest on it (you end up paying much more interest that way). However - this might still be a good option if you are able to pay the debt, live a bit and avoid the consequences of not paying.
For what it's worth - you should not have resigned - especially if you had insurance on the loan. Even if they terminated you - they would have obligations to pay you what you were legally owed and you could have claimed on the insurance.
Best of luck
Steve


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## chhetain (Jul 2, 2015)

Yeah nobody can be certain. well my installment is 1200 aed n got it from dubai Islamic . So i m worried because of Islamic finance . I heard that in Islam it's very bad to owe a debt and they punish u severely for that. So i m reqlly tensed now


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## TheTaxMan (Jul 2, 2015)

I'm a U.S. trained attorney, not UAE trained, and the best advice I can give you is to consult an attorney. Seriously. 

Also, some will say, "how can he afford a lawyer if he can't pay back his debt?" Well some will at least answer questions for free. And if they charge, well you don't have a choice. 

Unlike other Arab countries, UAE actually has good lawyers. Reach out and hopefully they'll answer your questions for free. But having debt out there, especially under fraudulent circumstances, is a big deal. It's not like drug trafficking, but it's still bad. 

Talk to a lawyer who has experience with your type of situation. You'll find that experience is better than legal knowledge because, as you said, Islamic law will govern your situation. Good luck.


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## Stevesolar (Dec 21, 2012)

TheTaxMan said:


> But having debt out there, especially under fraudulent circumstances, is a big deal. It's not like drug trafficking, but it's still bad.


Hi,
I don't see anywhere that the OP has stated he has a debt under fraudulent circumstances.
He simply took out a loan and lost his job.
Now he needs to find a new job that pays enough to live his life and clear the loan.
I don't see how an attorney will add any value to that situation.
You answer reminds me of the old joke:-
What's the difference between an attorney and an indignant chicken?
An indignant chicken clucks in defiance...............

Cheers
Steve


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## adrianh (Sep 20, 2008)

I would strongly suggest you go and speak to the bank. Explain your situation and then you can make an informed decision. I had a similar situation with NBD I was told the bank will not file a case until 3 instalments are missed this may only be NBD policy a and may not apply in your case but it's better if you speak to them so you know exactly what will happen and what is there process. In my case I was behind for a few months but it bought me enough time to sort things out and then get back on track good luck but do not ignore the problem you will get lost of advise on here some good some not so good but go speak to the bank.


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## adrianh (Sep 20, 2008)

Just a point if you do reach any agreement with the bank ask them to give you written confirmation


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## SgtRoswell (Apr 7, 2014)

chhetain said:


> Y... I heard that in Islam it's very bad to owe a debt and they punish u severely for that...


It has nothing to do with Islam. Its the country law that governs. 

I can't be of any help in this case however heres what I'd think in such scenario.

1. Legal consultancy of course
2. If I can't afford lawyer, will try to contact Embassy as they have legal counseling for their citizen. I know Embassy can be pain in the ass but worth trying on daily basis. 
3. Asking for a good friend to bail you out. 

Just try to have less pressure. Think of the worst case scenario and consider yourself in and then think about remedy. 

All the best.


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## fad828139250 (Jul 27, 2015)

Hi there, 

i had same problem, i had credit card and lost my job for over 2 years and didn't have money to pay the min every month and debts collection agency start to call me everyday was like nightmare till a friend give me a law firm telephone number that accept my case and dealt with the bank on my behalf and i end up paying 5k penalty and case close, you don't go to prison if you can come up with some money to pay the lawyer firm.


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## The Rascal (Aug 6, 2014)

fad828139250 said:


> Hi there,
> 
> i had same problem, i had credit card and lost my job for over 2 years and didn't have money to pay the min every month and debts collection agency start to call me everyday was like nightmare till a friend give me a law firm telephone number that accept my case and dealt with the bank on my behalf and i end up paying 5k penalty and case close, you don't go to prison if you can come up with some money to pay the lawyer firm.


Care to share who the law firm were/are?


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