Bankruptcy law shake-up call after Dubai boss flees

Posted by: sara Monday, 27 July 2009 9:42 PM[UAE] - UAE

you guys talk as if making a bad decision in business is a crime. business is about risks, its about having some debt. everyone has some. and if its a crime to make bad decisions in business why don't we start by forcing people to have a degree in business so they can set one up. there are not right and wrong decision. there is just LUCK! in Dubai, its just LUCK! businesses built Dubai, this Dubai that u see today is because of risks they took. you guys say, well u decided to set ur business here, and if u don't like it you can live. well sweetie, if we, did not come to this country, then this country would have been NOTHING! Dubai is built on tourism. built of foreigners coming and investing. YOU think Dubai would have been this famous with out our involvement. i think you guys have gotten a bit selfish. and don't get me wrong, i think Dubai is great. although i live in Canada now. but some rules need to change and people in Dubai need to realize some rules aren't so fair and just. and the points laws is to bring justice. lets close our eyes and imagine if it your son, brother, father, or yourself how would u like this law? would u say "oh well u took risks. u deserve it and this is what u should go through" this is not about Mr. Ford. this is about an unjust law that needs to change.

Posted by: sara Monday, 27 July 2009 9:13 PM[UAE] - UAE

i think having to go to jail is unfair. i mean, these people did not commit a crime. i mean look at the economy right now, we are dealing with a crisis. . when America's stuck market is hit the whole world is screwed. our economic status is not that good. we have to accept that many businesses will fail. should they be able to get away with it and not have to pay for their debt. no, i don't think so. they shouldn't go to jail thou. they should have extension. and no not one week extension. like 2 years. so they could slowly, get up and pay their debts. i mean what is the point of going to jail? those people they got money from, are not going to get paid if they are in jail. so why not let them get a bit stronger and pay their debt. these are difficult times people. of course i feel for those who have lost their money because of people like Simon. BUT he wouldn't have gone away if he was given a break. my father has a big company in Dubai and he has been a successful business man for 14 years in Dubai! and since the stuck markets fails ( his business is international ), he has been having a hard time. he came home last night telling me that he might go to jail. because the business is so bad. now do you think thats fair? bankruptcy is not a crime. SPECIALLY if it happens during an economic crisis! and also one more problem, in Dubai a man is a provider of the house, usually, right? i mean if u are from middle east. if the man goes to jail, then how are his family supposed to survive, do we really want to have poverty in Dubai? its an unjust law that has no purpose.

Posted by: bon Monday, 6 July 2009 6:53 PM[UAE] - uae

wow! Mr. Hamdan surprise surprise never expected this reply arent we suppose to work towrds solution like if not for us for next generations or we want them to end like us eaten by loan / credit card sharks this for all around globe becouse even far far away places from city people are suffering from loan default people committing killing them selfs . Need solution here no one is bailing out here anyone and not everyone has name GM Motors . Dont be rude facts say people invested here for freehold property to stay in this safe place far away from conflects which are usual breaking news on tv everyday hmm Wonder who has advertised all these property mania here aa ah Banks ! So we expatriate fell for brand and now running away from same brand . all what we are saying is let the law remain same jail for loan defaulters but after no other alternative atleast give them break extend there stay here to find new jobs force banks to accept reduced installment for some time ofcourse dont allow this person to go out of country issue here is sending people to jail till all is paid this is one reason people leave that if they go to jail they will remain there for ever till someone pays there debit ! this is bit scary stuff and hype and lies of western media added to it as well . guide us tell us not to loose faith in Dubai . Even we are expatriate we love UAE . Dont want to start blame Game here so might not visit this page gain .

Posted by: The Consultant Monday, 6 July 2009 11:40 AM[UAE] - United Arab Emirates

Steve, you've got it the wrong way round. It's BECAUSE of the "jail for bounced cheques" rule that there are so many problems. People and businesses in the UAE have become lazy and over-reliant on the threat of jail time for debtors, and as a result do not do a proper assesment of the people they are doing business with. If you were in the developed world, would you give credit to a total stranger in exchange for a post-dated cheque? Would you sell your car to a total stranger and allow him to drive off there and then after handing you a cheque? Of course not, because you know there is a risk the cheque will bounce you become very careful about who you give credit to. In my many years working with businesses in the UAE, I have been appalled at the amount of money banks are willing to lend to junior employees, without asking proper questions about their other committments and total level of debt - even topping up their loans after a few repayments have been made without asking what they intend to do with the money (answer: living beyond their means). Consider this: at present it is a crime to write out a cheque knowing that you do not have sufficient funds to honour it. If you write a post-dated (or worse, an undated) cheque, you cannot geniunely know for sure that you will have the funds to cover it because anything could happen in the meantime. It is therefore arguable that the very act of writing a post-dated cheque should also be illegal, and that any creditor that insists on a post-dated cheque is an accomplice and thus should lose their rights under the law. Let's introduce that law and watch the banks scramble to rectify their irresponsible lending practices. I certainly do not condone the actions of anyone who hands over a cheque as payment knowing that they don't have the funds, but on the other hand, there are plenty of people who have ended up in a mess through no real fault of their own, perhaps because they lose their job, and then don't have the funds to cover a cheque that they have written months or even years earlier. These are the people who end up suffering under these rules, whereas the genuine con-men make sure they have disappeared before the law can catch up with them.

Posted by: Sam Monday, 6 July 2009 11:17 AM[UAE]

Yes, it does encourage to ignore the banks and shove off. That is the situation of the land and its law and until that changes there's little encouragement for people to conduct proper business. Reputation? Please! That went out the window the moment you set foot in Dubai as no one knows anyone here. Simon is clearly saying he wants to pay the people he owes, but he just needs what every human being needs in the World, time and debt restructure to organize matters. UAE has no room for that. As for me, I already left Dubai and thankfully living in much greener pastures. No regrets about Dubai at all. As for hamdan's comment "and the person who is saying they should do the same, i tell you i wish that your employer do that to you, while you have rent and car loans and other stuff, then you go to jail for not paying, then only you will know that what your boss did is bad for employees as well." You are great man. You wanted to counter our argument but instead fortified it! All one needs to fall into insolvency here is that their employer stops paying and runs off, and simply there won't be anyone to protect you from the carnivorous banks and landlord security cheques! People came here because the country touts itself as a World class with English law, it didn't say it doesn't pursue civil debts, forcing people to use cheques, and no it doesn't say in its law that if you lose your job or business revenue they'll let the banks devour you, it said advanced financial industry and strong business infrastructure, and actually described dispute resolution laws that are completely not in effect. Is your opinion then: How dare the stupid expats believe a LIE and then blame anyone else but themselves?