Fleeing the UAE to avoid debt is a bad idea

Fleeing the UAE to avoid debt may seem like a quick solution to a financial problem, but it can lead to serious legal and financial consequences that can haunt you for years.

Legal Repercussions

Leaving the country without settling your debts can result in severe legal actions.

• Travel ban: The UAE has stringent laws regarding debt. If you leave the country with unpaid debts, you may face a travel ban, preventing you from returning to the UAE.
• Arrest warrant: Creditors can file legal cases against you, leading to arrest warrants that may be executed if you attempt to return to the UAE or transit through its airports.
• International legal actions: The UAE has agreements with other countries for debt recovery. Creditors can pursue you internationally, leading to legal actions in your home country.

International agreements:

• India: The UAE and India have signed multiple agreements, including mutual legal assistance treaties that facilitate cooperation in civil and criminal matters. This means debt-related judgments in the UAE can be enforced in India.
• Russia: The UAE and Russia have agreements that allow for legal cooperation and extradition, meaning that debt recovery efforts can extend across borders.
• Pakistan: There are bilateral agreements between the UAE and Pakistan that include mutual legal assistance in civil and criminal matters, enabling the enforcement of debt recovery actions.
• Bangladesh: The UAE has agreements with Bangladesh that cover mutual legal assistance, which can include cooperation in recovering debts.
• Philippines: The UAE and the Philippines have agreements that allow for mutual legal assistance in civil and criminal matters, which includes cooperation in debt recovery. This means that creditors in the UAE can seek enforcement of debt judgments in the Philippines, and vice versa.

Damage to credit history

Fleeing the UAE with unpaid debt can severely damage your credit history, both locally and internationally.

• Negative credit score: Your credit score will be significantly impacted, making it difficult to obtain credit in the future.
• Global credit reporting: Many countries share credit information. A damaged credit history in the UAE can affect your ability to get loans, credit cards, and even employment in other countries.

Financial and social implications

Avoiding debt by fleeing can have long-term financial and social implications.

• Asset seizure: Any assets you leave behind in the UAE, such as property or vehicles, can be seized by creditors to recover the debt.
• Employment difficulties: Employers, especially in financial sectors, may view fleeing debt as a sign of financial irresponsibility, affecting your job prospects.
• Social stigma: In many cultures, running away from debt carries a social stigma that can impact your personal and professional relationships.

Difficulties in financial planning

Fleeing the UAE to avoid debt can complicate your financial situation and future planning.

• Limited financial services: You may face difficulties accessing financial services such as opening bank accounts or getting loans in other countries.
• Inability to invest: A poor credit history and ongoing legal issues can hinder your ability to invest in property, business, or other financial ventures.

Moral and ethical considerations

Avoiding debt by fleeing can raise moral and ethical questions about financial responsibility.

• Personal integrity: Failing to fulfil your financial obligations can affect your sense of personal integrity and ethical standing.
• Impact on family: Your actions can negatively impact your family, causing stress and potentially limiting their financial opportunities.

What to do instead

Rather than fleeing, consider these constructive steps to address your debt:

• Communicate with creditors: Reach out to your creditors to explain your situation. Many are willing to negotiate payment plans or settlements.
• Seek professional help: Organisations like Eltezam can provide support and guidance on managing and resolving your debt.
• Explore payment options: Utilise the various payment options available to manage your debt effectively and avoid legal repercussions.
• Financial planning: Work on a budget and financial plan to repay your debts and rebuild your financial stability.

How Eltezam can help

Eltezam offers various options to help you manage and resolve your debt. By exploring payment plans and receiving personalised support, you can take control of your financial situation and pay off your debt as quickly as possible.

Our team is committed to helping you regain control of your financial situation in a stress-free manner. By addressing your debt responsibly and seeking the right support, you can avoid the severe legal, financial, and social consequences of fleeing the UAE. Taking proactive steps to manage your debt can lead to a more stable and secure financial future.