When a company goes bankrupt, it moves on toward availing different options which include debt settlement and many more. The bankruptcy lawyers in UAE play a huge part during a debt settlement. They settle the debt in a way that the company has to pay a lesser amount than discussed as the rest of it gets settled.
Another way of getting rid of the debt is closing down the company and dividing the company assets between all the creditors. This can be voluntary as well as involuntary dissolution. Involuntary dissolution is ordered by the court
Scope of bankruptcy law
· All the private sector companies will come under this law
· The companies located in the free zones will come under this law
· The individually owned and civil companies will come under this law
Restructuring of debts
The individuals can take the help of debt restructuring if they are heading towards bankruptcy. This will prove to do wonders for the companies who are at risk of getting defaulted
how to carry out the process of debt restructuring?
The easiest way to carry out this process is to reduce the interest rates on the debts and the loans. This can also be carried out by the extension of dates for paying the debts.
Process of restructuring debt in the UAE
- Apply to bankruptcy point an attorney who has all the knowledge of the subject
- Wait till the application gets approved
- Transfer the powers to the experts for management
- Take the approval for restructuring
- Finalize the process of restructuring