When a company cannot pay debts, to whom the company owes it, bankruptcy is an option. Article 67, UAE Bankruptcy Law, explains bankruptcy procedures. If possible, debtors must be assisted in restructuring the debt. The debtor must be given the opportunity to restructure his debts.
He has the right to declare bankruptcy in accordance with Article 67 of the UAE Bankruptcy Law. He can choose and post asset liquidation (his assets) to manage liabilities. He can also approach the UAE bankruptcy courts. Article 68 of the UAE Bankruptcy Law clarifies that the debtor has the right to appear before the court for the purpose of bankruptcy if he has joined the 30 days by failing to pay his obligations. For a fair liquidation, it is best to file bankruptcy and liquidation through court.
Individual or personal insolvency procedures can also be carried out, which is described under Federal Decree Law No. 19 of 2019. The UAE Bankruptcy Law also allows personal insolvency with business bankruptcy.