Bankruptcy Lawyers
Hire Our Best Bankruptcy & Insolvency Services in Dubai, UAE
The UAE Bankruptcy is a legal procedure that helps an individual or a business, which cannot pay off its outstanding debts. Federal Decree-Law No. 51 of 2023 on Bankruptcy is an important regulation. The legislation outlines a simplified process for restructuring debt or selling assets in an orderly manner. It provides protection to the interests of creditors, while offering debtors the opportunity to resolve their financial problems under the supervision of the courts.
At HHS Lawyers, our Bankruptcy Services can help you with:
- We review your financial situation to decide whether you qualify for bankruptcy or debt restructuring.
- Your documents will be prepared and submitted to the UAE Courts by our team.
- We represent you in all matters related to creditor contact and communication with court trustees.
- Our team will help you complete the Preventive Settlement process to help you to avoid full bankruptcy.
- We create and evaluate debt repayment plans to ensure compliance with UAE insolvency regulations.
What is Bankruptcy in UAE?
Bankruptcy refers to the legal process that is employed when a person or a company in the UAE is unable to pay off its debts. Under the Federal Decree‑Law No. 51 of 2023 applies to commercial entities and traders and Federal Decree‑Law No. 19 of 2019 (for natural persons), bankruptcy gives a clear and organized way to handle financial problems. The aim is not to penalise the debtor but to assist them in recovery. The law allows the debtor to either reorganise the debts or to fairly sell their assets for repayment of creditors.
Legal Framework for Bankruptcy in UAE
The UAE has updated its bankruptcy regime to ensure smooth running of businesses and protection for creditors.
Financial and Bankruptcy Law
The UAE Financial and Bankruptcy law, Federal Decree-Law No. (51) of 2023, is the main bankruptcy law in the UAE (effective 1 May 2024). This law repeals the earlier Federal Decree Law No. 9 of 2016. It introduced a clear framework for how various insolvencies will be handled. This includes:
- Preventive Settlement.
- Financial Restructuring.
- Bankruptcy and Liquidation.
- Choice of managers and examiners.
- Rights of creditors and voting process.
The law aims for fair treatment of creditors, structured rehabilitation of the corporate debtor, and an orderly liquidation process where the recovery of debts is not possible.
Cabinet Resolution No. 94 of 2024 – Executive Regulation of the Financial Restructuring and Bankruptcy Law
These regulations specify the procedures under the law as relating to:
- Minimum debt thresholds for filing cases (e.g., AED 300,000 for individuals, AED 500,000 for legal person, such as entities)
- Security deposit rules
- Roles of regulators such as the Central Bank of the UAE and the Securities and Commodities Authority
Specialised Bankruptcy Court (2025)
In 2025, a specialised Bankruptcy Court was established in the UAE in accordance with UAE Federal Decision No. 39 of 2025 on the Regulation of the Bankruptcy Court. The court oversees bankruptcy-related proceedings and decides cases of insolvency and restructuring. This ensures that financial distress matters are adjudicated with expert oversight and more quickly.
Free Zone Regimes – DIFC and ADGM
Insolvency laws of businesses operating in DIFC and ADGM are separate and follow international standards. The frameworks govern restructuring, administration, and winding-up procedures in respect of companies operating within the free zone.
When You Need a Bankruptcy Lawyer in the UAE
You need to hire an experienced bankruptcy lawyer in the UAE as soon as your business financial problems begin to affect your personal life.
Common Situations Where Legal Help Is Needed
- You cannot pay your debts: When You are unable to pay your payments for loans, your suppliers or your employees.
- Creditors are pressuring you: When your bank and your creditors are warning you that they will seize your property, block your financial accounts and initiate lawsuits against you.
- Cash flow problems: Your business lacks sufficient funds to handle its daily operational requirements.
- Possible travel bans or account freezes: Unpaid debts lead to these situations, which legal assistance can help you prevent.
- Director liability risks: Directors become personally accountable for the company’s financial situation when the company becomes insolvent, hides its assets, engages in fraudulent activities and continues its business operations without declaring insolvency. Getting legal advice early protects your assets.
- Difficult creditor disputes: A lawyer can assist in reaching fair agreements through negotiations while preventing expensive errors.
- Cross‑border insolvency (DIFC / ADGM): Legal expertise is required for all cases that involve free zones and international creditor disputes.
Who Can File for Bankruptcy in UAE?
Bankruptcy services are needed by different groups in the UAE who are facing serious financial problems.
- Commercial Companies include LLCs, PJSCs and other businesses which face financial trouble because they cannot pay their debts.
- Individual Traders include licensed professionals and small business owners who can no longer cover their business expenses.
- Free Zone Entities apply to all free zone companies in the UAE except for DIFC and ADGM which operate under their own legal system.
- Creditors include banks and suppliers who start bankruptcy procedures to recover their money from borrowers who failed to pay back.
Documents Required to File for Bankruptcy in the UAE
The applicant must submit complete financial documents when they want to file for bankruptcy in the UAE. The required documents for this process include.
- Trade License: a company must provide a complete commercial registration document.
- Financial Statements: Submit its audited financial records for the past two years.
- List of Creditors: The debtor provides complete information about all their creditors which includes their names, addresses and total debt amounts including secured and unsecured debts.
- Asset Inventory: The debtor must provide complete documentation of all their assets which includes both movable and immovable assets.
- Statement of Cash Flow: The statement shows that the debtor has failed to pay debts for more than 30 days.
- Corporate Approvals: Board resolutions or shareholder meeting records which show all parties have agreed to proceed with bankruptcy.
Our Bankruptcy and Insolvency Services
Legal Consultation & Financial Review
First, we take a complete assessment of the financial situation and the legal risks involved. Following areas are to be reviewed:
Debt obligations and creditor demands
Loan agreements and guarantees
Notices from the banks/institutions or Enforcement actions
Cash flow and operational risks
Based on this assessment, we prepare a well-defined and specific legal strategy suiting your needs.
Preventive Settlement Applications
We are helping our clients in filing preventive settlement applications under the Federal Decree Law No. 51 of 2023. This allows businesses to continue with their operations and also to negotiate with creditors. Our services include:
Our team assist in drafting applications and supporting documents
We Prepare settlement proposals and financial plans
We also represent our clients before the Court , if required
We Negotiate with creditors in favorable terms
Debt Restructuring & Negotiation with Creditors
Our negotiations involve banks, lenders, and suppliers to achieve sustainable debt arrangements. This service covers:
New repayment plans
Longer instalment schedules
Cancellation of penalties and reduced interest
Settlement agreements based on cash flow of the business
Our aim is to assist business continuity by relieving some financial pressure.
Filing for Bankruptcy & Representation in Court
If restructuring cannot be achieved, we run the entire bankruptcy filing process, which includes:
Preparation and filing of petitions
Interaction with court-appointed trustees
Representation of clients in hearings and meetings with creditors
Management of creditor objections and compliance issues.
Liquidation Assistance
We fully assist our client when it comes to liquidation including:
Identification and valuation of assets
Coordination with the Trustees and the Courts
Verification and ranking of creditor claims
Closing company records and compliance reporting
Creditor Representation
We also represent creditors recovering debts. Our services include:
Filing claims & joining creditor committees
Challenging fraudulent or preferential transactions.
Opposing unsuitable restructuring plans.
Enforcing security interests to maximize recovery.
DIFC and the ADGM Insolvency Matters
For DIFC and ADGM insolvency matters, we provide the following services:
Make applications for restructuring or administration.
Coordinate through the different jurisdictions.
Enforce judgement and creditor rights.
Strategic planning onshore and free zones.
Why Choose HHS Lawyers to file Bankruptcy
HHS Lawyers are trusted by clients because of the following reasons:
- In-depth Knowledge of UAE Bankruptcy Law: Our lawyers are well aware of the UAE bankruptcy law system. We ensure maximum compliance and protection of all your rights.
- Simple and Practical Advice: We explain complicated laws in simple terms. Our team makes you understand clearly what your options are, and what you can do at every stage.
- Strong Negotiation and Court Representation: We protect your rights from negotiations with creditors. We defend your interests and try our best to achieve the best possible outcome.
- Confidentiality and Professionalism: We handle sensitive financial matters with complete discretion, protecting your privacy and reputation.
- Proactive Strategies for Best Outcomes: Our focus is to save businesses, securing assets and solutions that will work for your future.
- Multi Jurisdiction Experience: Proven competence in both offshore and onshore UAE courts, and the insolvency regimes in DIFC and ADGM.
FAQ’s
Can you help me find a reliable attorney for my bankruptcy case?
To seek a trustworthy bankruptcy attorney, one should consider a law firm that will be involved in a case of insolvency and restructuring of debts. An experienced attorney knows the process of bankruptcy, negotiation with creditors and filing of documents in court. The experience and reputation of the firm and the way of dealing with financial disputes is also worth reviewing before engaging legal representation.
What are the steps I need to take to file for Chapter 7 Bankruptcy?
It usually starts with an assessment of your financial position, the compilation of papers associated with debts and assets and a bankruptcy attorney. The attorney will assist with the necessary legal filings, will file the bankruptcy petition in the court and will lead you through the creditor meetings and through the court process. The legal advice is advisable as each jurisdiction may require different requirements.
I’m considering bankruptcy; what services can assist me with the process?
Bankruptcy legal services normally cover evaluation of financial cases, filing of bankruptcy applications, litigation and handling of creditors, and bankruptcy administration. Attorneys can also assist in searching the options of debt restructuring or settlement prior to filing bankruptcy.
Which law firm can provide me with a free bankruptcy consultation?
Most of the law firms have introductory consultations where they analyze the financial conditions of a client and explain what legal measures are available to them. In this consultation, the lawyer will normally evaluate the debts and liabilities and possible ways of settling the issue.
How can I easily clear my debts through bankruptcy, and who can guide me?
Bankruptcy is a legal procedure that is set to assist people or businesses to settle or dispose some of their debts in cases where they fail to settle some of their financial commitments. A bankruptcy attorney is able to consider your case, provide you with the legal options that are available and assist you in the procedures that need to be followed to settle the debts within the law.
What should I look for in a bankruptcy lawyer before hiring one?
The factors to be considered when selecting a bankruptcy lawyer are the experience in the field of insolvency law, their knowledge of the court processes, their successes in handling related cases, and their capacity to present straightforward legal counselling. Being transparent about fees and having a systematic attitude towards the case are also very significant.
I need to resolve my financial struggles; can you recommend a good bankruptcy law firm?
In case you are in financial trouble then it is best to consult a law firm specializing in bankruptcy, insolvency, and debt restructuring so that they can assist you in knowing your legal grounds. An experienced attorney has a chance to examine your economic situation and suggest the most suitable option.
What are the fees for hiring a bankruptcy attorney, and how can I find affordable options?
Bankruptcy charges can differ with the complexity of the case, the volume of documentations needed and the procedures that the court is going through. Other law firms have a flexible fee arrangement or consultations to make clients to be aware of the amount to expect.
Is there a law firm that specializes in both personal and business bankruptcy?
Yes, most law firms do cases on bankruptcy, both individual as well as corporate. These companies normally offer or help in personal insolvency, company restructuring, negotiating with creditors, and litigating in bankruptcy cases.
What reviews can you share about local bankruptcy lawyers and their services?
In the case of bankruptcy lawyers, client testimonials, professional experience, and case experience are useful when assessing the lawyers. The reviews may give the information about professionalism, communication, and the possibility of the lawyer to deal with the complicated financial cases.
What is the “Preventive Settlement” in UAE law?
Under Federal Decree-Law No. 51 of 2023 on Financial Reorganisation and Bankruptcy, the Preventive Settlement is a court-supervised process. It allows a debtor to reach an agreement with creditors before entering full bankruptcy, as long as the debtor has not completely stopped paying all debts. It is designed to help the debtor keep on performing its business activity and paying its debts through applying a plan.
Does filing for bankruptcy stop my travel ban?
After having received the bankruptcy application, the debtor can request the court to suspend or terminate travelling restraints and other precautionary measures related to the debt cases included in the bankruptcy.
Is a Company Director Held Liable during Bankruptcy?
Yes. The law in the United Arab Emirates allows for accountability on the part of directors of companies. They could be held personally liable if they committed fraud or hid assets or continued to run the business. They could also be found liable for carrying on the business when they know it is insolvent and have not filed for bankruptcy.
Is the bankruptcy process confidential?
The records of a court are official, but the law does provide some amount of privacy during the restructuring phase so that the business in question can continue to operate. Further, the business will not suffer any unnecessary harm to its reputation.
Can creditors make a company file for bankruptcy?
Yes. A creditor (or a group of creditors) can apply for a company’s bankruptcy if:
The unpaid debt is at least AED 1,000,000.
If the debtor is regulated by an authority, the debt must be at least AED 10,000,000.
The debtor must have failed to pay for 30 days after receiving a formal demand notice.
HHS Lawyers Contact- Talk Today With a Bankruptcy Specialist Attorney’s
If you’re dealing with financial problems or confused about the UAE bankruptcy law, our bankruptcy lawyers are here to offer you the help you need. At HHS Lawyers, our experts provide a confidential consultation. We will discuss your case, explain the legal options available, and assist you in taking effective measures to secure your business, assets, and future.
