An insolvency lawyer in Dubai helps businesses and individuals who cannot pay their debts, guiding them through restructuring, bankruptcy, or debt solutions. They also help creditors recover money when a debtor becomes insolvent. In the UAE, company insolvency is governed by the Financial Restructuring and Bankruptcy Law, Federal Decree-Law No. 51 of 2023, while individuals are covered by a separate insolvency law. At Salha Al Basti Advocates, our lawyers bring over 35 years of combined experience in commercial law and debt recovery, advising in both English and Arabic. Whether you are a struggling business, a debtor seeking protection, or a creditor who needs to file for bankruptcy in the UAE against a debtor, we guide you. An insolvency lawyer in Dubai protects your interests during difficult financial times.

What Does an Insolvency Lawyer in Dubai Do?

An insolvency lawyer helps people and businesses deal with serious debt problems. Money trouble is stressful, but there are legal options that can help. A lawyer guides you to the best solution.

Key Areas of Help

• Business rescue: Restructuring debts to keep a company alive.
• Bankruptcy: Guiding a debtor through the formal process.
• Debt solutions: Helping individuals deal with unpayable debts.
• Creditor claims: Helping those owed money recover it.

The rules differ for companies and individuals, with the Financial Restructuring and Bankruptcy Law, Federal Decree-Law No. 51 of 2023, covering businesses. An insolvency lawyer turns a frightening debt crisis into a clear plan of action.

What Is the Difference Between Insolvency and Bankruptcy?

Many people use these words to mean the same thing, but they are different. Understanding the difference helps you know your options. Both point to serious financial trouble.

Insolvency is the financial state of being unable to pay your debts, while bankruptcy is the formal legal process that can follow. In the UAE, there are two separate systems: companies and traders come under Federal Decree-Law No. 51 of 2023, which took effect in May 2024, while ordinary individuals who are not traders come under Federal Decree-Law No. 19 of 2019. Getting this distinction right matters, as the two have different courts and procedures. Knowing whether your situation is business or personal is the first step to the right solution.

How Can a Lawyer Help a Struggling Business?

When a business hits financial trouble, acting early opens up more options. The law is designed to help viable businesses survive, not just shut them down. A lawyer helps you use these tools.

The main goal is often to avoid liquidation through a court-supervised rescue. A preventive settlement lets a company that has not stopped paying its debts for more than 60 days reach a deal with creditors while staying in control. Restructuring goes further, reorganising the debts to keep a viable business running. We also advise directors, since the law can hold management liable in certain cases, drawing on our corporate law experience. Acting early gives a struggling business the best chance to survive.

How Can a Lawyer Help Creditors Recover Money?

Insolvency is not only about debtors, and creditors also need strong protection. When someone who owes you money becomes insolvent, quick action matters. A lawyer helps you protect your position.

We help creditors file and prove their claims, take part in the process, and, where appropriate, start bankruptcy proceedings against a debtor. Importantly, the new law lets secured creditors enforce against secured assets, with the court's permission, even during bankruptcy. This links closely with our debt recovery work, and you can read how to recover debt in the UAE. Strong legal support gives creditors the best chance of recovering what they are owed.

How Does the Bankruptcy Process Work in the UAE?

The UAE now has a clear, modern process for business insolvency, run through a dedicated court. Knowing the main routes helps you understand your options. A lawyer guides you through each stage.

The Main Routes

1. Preventive settlement: The earliest option, keeping the debtor in control.
2. Restructuring: A court-supervised plan to reorganise debts.
3. Bankruptcy: Liquidating assets and paying creditors when rescue is not possible.

These are managed by a specialised Bankruptcy Court, with a trustee appointed to handle the process. The law also created a Bankruptcy Register, the first of its kind in the UAE. Understanding the routes helps you choose the best path for your situation.

What Options Do Individuals Have Under UAE Insolvency Law?

Individuals who cannot pay personal debts also have legal protection and options. The law aims to help honest people recover, not punish them. A lawyer helps you find relief.

Under Federal Decree-Law No. 19 of 2019, an ordinary individual who is not a trader can apply to court for a supervised settlement or insolvency process. A key protection is that an honest person who genuinely cannot pay is not imprisoned for the debt itself, though fraud remains a crime. There is also a path back: a person is generally restored to normal financial standing three years after the process ends, and sooner if they repay a large part of their debts. Knowing your options as an individual can give you a real fresh start.

Why Choose Salha Al Basti Advocates?

Insolvency matters are complex and high-stakes, so the right lawyer makes a real difference. Experience, discretion, and clear advice all count. Our firm brings all three to every case.

Key reasons clients choose us include:

• Deep experience: Our partners bring over 35 years of combined legal experience.
• A proven record: We have supported more than 3,000 satisfied clients.
• A strong team: Our firm has over 30 legal team members across practice areas.
• Client trust: We hold a 4.4 Google rating from the people we have helped.

Our bilingual team works in both English and Arabic, which matters in court and with creditors. You can explore our full legal services or contact Salha Al Basti Advocates directly. Real experience and clear guidance give your insolvency matter its strongest footing.

How Do You Get Started?

Getting started is simple, and the first step costs you nothing. A clear process helps you feel prepared and in control. We guide you from your first message to a resolution.

The usual steps are to contact us and explain your financial situation, receive a free first consultation, get clear advice on your options, and then decide how to proceed with our support. Depending on your case, this may involve litigation and dispute resolution, civil law, or arbitration, and for distressed businesses, advice on mergers and acquisitions or how to file a lawsuit in Dubai. Taking that first step early gives you the most options.

Talk to an Insolvency Lawyer in Dubai Today

A trusted insolvency lawyer in Dubai protects your interests, explains your options clearly, and helps you deal with serious debt, whether you are a business, a debtor, or a creditor. In difficult financial times, acting early is often the key to a better outcome. The sooner you get advice, the more options you have.

Whether you need to rescue a business, deal with personal debt, or recover money owed to you, our bilingual team is ready to help you understand your options and plan the best way forward.

Facing serious debt? Contact Salha Al Basti Advocates on +971 4-397-0701 or email ask@albastiadvocates.com to book your free consultation with an insolvency lawyer in Dubai today.

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