Debt panellist 3: Keren Bobker, an independent financial adviser with Holborn Assets
Despite your unfortunate situation, non-payment of debt is a criminal offence in the UAE and even with such extenuating circumstances, the bank will still require payment of monies owed. Once three month’s payments have been missed the bank has the right to take further action. This will usually be a police case and travel ban and not only will these prevent you from travelling in or out of the UAE, it could prevent a new residency visa being issued if you manage to obtain a new position.
The amount borrowed is fairly substantial compared to your monthly income, even if within Central Bank limits at the time, and was rather more than the amount taken from your father’s business. Given the circumstances it would seem reasonable for family to be assisting you with your present difficulties as the debt arose for your father’s benefit and it would be unfair for you to suffer serious consequences having borrowed the money for someone else.
The family needs to at least help you keep up the minimum monthly repayments until you are back on your feet financially. Then I hope they would continue to assist, especially if they win the court case. It seems unfair for you to shoulder this burden, and consequences, on your own.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae