Consequences of Being Declared as Bankrupt

Although declaring bankruptcy in UAE will be able to provide relief when a business is no longer able to repay its liabilities. There are still a few consequences that need to be taken into consideration. Debt collection Dubai agencies are there for your legal support and help in this regard.

They have the expertise and special skills to make the matter easier and understandable for you.

Consequences

Below are few consequences you have to face after being bankrupt. You need to know them before taking any legal steps. Moreover, take help from a legal consultant to avoid further troubles.

  • Hire an Attorney

the legal professional will be the one managing your bankruptcy. The expert will not only work with you but with your creditors as well to achieve a reasonable and fair outcome for all. With bankruptcy, a business has the obligation in providing details to the lawyer including any change to the company’s circumstances.

  • No Release from Liabilities

a business will have to put its assets for sale during company liquidation. Or undergo formal restructuring to be able to make changes to the business operations and settle debts to creditors. Debt collection Dubai agencies can help you here with their expertise.

  • Effect on Future Credit

when applying for credit, you’ll have to inform a provider regarding the bankruptcy. Credit providers also have records of bankruptcy. Which they retain for two to five years starting from the date the business filed for bankruptcy.

  • Selling of Assets

with company liquidation, company assets will be sold by the company’s trustee or bankruptcy attorney in UAE. The proceeds will be used in paying creditors.

Conclusion

Hence, if you want to know about it, contact debt collection Dubai agencies. They provide their services all over the UAE. They are available in Ajman, Sharjah, and Fujairah as well.

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