Here is how to file bankruptcy in dubai: submit an application to the Bankruptcy Department of the competent court. Ask for preventive settlement, restructuring or bankruptcy proceedings (Article 15 of the Financial Restructuring and Bankruptcy Law). The law was promulgated by Federal Decree-Law No. 51 of 2023 and replaced the 2016 bankruptcy law. Its executive regulation is Cabinet Resolution No. 94 of 2024.
The law covers companies, traders and licensed professional civil companies. It does not cover debts incurred for personal, family or consumption purposes (Article 3). A natural person who is not a trader falls under the personal insolvency law (Federal Decree-Law No. 19 of 2019). This guide does not cover that separate regime.
Quick Answer
To file bankruptcy in Dubai under Federal Decree-Law No. 51 of 2023, an eligible business or trader submits an application to the Bankruptcy Department of the competent court. Depending on the circumstances, the application may concern preventive settlement, restructuring or bankruptcy proceedings. Personal, family and consumer debts fall outside this business bankruptcy framework.
Prepare the financial statements, creditor details, asset records, cash-flow forecasts, litigation information and required company authorisation. A debtor may apply within 60 days of cessation of payment or learning that it cannot pay debts when due, although a later application remains admissible. Filing and a court decision have different legal effects, so the correct procedure and evidence should be assessed before submission.
Who the law covers and who it leaves out
| Debtor | Position under the law | Article |
|---|---|---|
| A company subject to the Commercial Companies Law | Covered | 3(1)(a) |
| A natural person with the capacity of a trader | Covered | 3(1)(b) |
| A licensed civil company of a professional nature | Covered | 3(1)(c) |
| A company or establishment in a free zone that is subject to special provisions on settlement or bankruptcy | Not covered | 3(2)(b) |
| A bank, financial institution or insurer licensed by the Central Bank | Not covered where special legislation regulates its settlement or bankruptcy | 3(2)(c) |
| A government-owned company whose own laws or articles set special rules | Not covered where those rules regulate its preventive settlement or bankruptcy differently from this law | 3(2)(a) |
| Debts incurred for personal, family or consumption purposes, including buying a home for the family | Not covered | 3(2)(d) |
A natural person who is not a trader can seek a court settlement or insolvency procedure. Federal Decree-Law No. 19 of 2019 governs that route, with its own conditions and procedure.
Who can file
| Applicant | Conditions | Article |
|---|---|---|
| The debtor | The debtor may apply for preventive settlement or bankruptcy proceedings within 60 days of cessation of payment. Alternatively, the period starts when it learns it will be unable to pay its debts when due. A late application is still admissible | 15(1) |
| An ordinary creditor, or a group of creditors | The debt must be unconditional, undisputed and payable, and not below the minimum set by the executive regulation. The creditor must first have served a notice to pay. Then 30 days must have passed without the debtor acting | 16 |
| The regulatory authority | It may apply for a debtor it supervises, with evidence of cessation of payment or financial instability. First, it must notify the debtor and give it up to 30 days to respond | 18 |
| The debtor’s heirs | They may apply within two years of the debtor’s death. If they disagree, any heir may apply | 21 |
Cessation of payment means failing to pay a due debt 10 days after the deadline in the creditor’s notice. This applies even if the debtor’s assets are worth more than its debts (Article 1). For a debtor supervised by a regulator, the regulator must first be notified. No application on that debtor’s debts can be filed until 10 days after notification (Article 4). The executive regulation, Cabinet Resolution No. 94 of 2024, sets the minimum debt amounts. These apply to applications by debtors, creditors and regulators (Articles 15, 16 and 18).
Considering Bankruptcy Proceedings for Your Dubai Business?
Discuss your business debts, financial position and eligibility under the Financial Restructuring and Bankruptcy Law with Leaders Advocates. Ask which procedure and filing requirements may apply before submitting an application.
Choosing the procedure
The law tries to keep a viable business alive, so liquidation is the last option (Article 2).
| Procedure | What it is | Article |
|---|---|---|
| Preventive settlement | Measures to help the debtor keep trading and pay its debts through a plan. Creditors must approve the plan and the court must ratify it. A debtor in default, or expecting to default, can apply | 1, 56 |
| Restructuring plan | Available where the debtor’s business is viable and it has stopped paying or is in a financial deficit. The creditors vote on a plan | 87 |
| Bankruptcy | A collective procedure that settles the debts by liquidating the debtor’s assets and distributing the proceeds to creditors | 1 |
If several applications are filed, the preventive settlement application takes precedence over the restructuring application. The restructuring application takes precedence over the bankruptcy application (Article 19). For negotiated options before a filing, see settling debt without going to court in the UAE.
Documents the application must include
The Bankruptcy Department rejects an application that lacks the required documents without an excuse the court accepts (Article 33).
- A statement of the debtor’s economic and financial position and property. Include data on its employees and the dues owed to them.
- A copy of the commercial or industrial licence and the commercial register.
- The commercial books or financial statements for the three fiscal years before the application.
- A statement of the cases filed by and against the debtor, and the proceedings that the decision would stop.
- A report with one-year cash flow and profit expectations. Include the known creditors and debtors, with their addresses and ranking. Add a detailed list of property and its approximate value.
- A statement of property dispositions in the three years before the application, with a statement from the registries.
- The name of the trustee the applicant nominates. State whether the debtor can manage its own business and identify any precautionary measures needed.
- For a company, the decision of the competent body authorising the application, and its incorporation documents.
The executive regulation sets the deposit or bank guarantee, which covers the costs of the initial proceedings (Article 25).
how to file bankruptcy in dubai and the court timeline
- Decide the procedure and gather the documents above. The application can be filed electronically (Article 14).
- File the application with the Bankruptcy Department and deposit the guarantee. The head of the department can reduce the deposit. Where the debtor lacks liquidity, the head can postpone it (Article 25).
- The Department notifies the creditors and, if the debtor did not apply, the debtor. They have 10 days to respond (Article 28).
- The court decides within 10 days after the response periods. Its decision sets a temporary cessation of payment date (Article 31).
- The decision is announced within 10 days and recorded in the registers (Article 35).
- The court appoints a trustee in the same decision where it admits an application for restructuring or bankruptcy (Article 36).
Need Help Preparing a Bankruptcy Application?
Speak with Leaders Advocates about the required financial statements, creditor records, company authorisations, proposed trustee and court filing process. Ask how the supporting documents and applicable deadlines should be assessed.
What happens once you file
Some effects arise on filing, and others only when the court decides. For the separate enforcement context, read about seizure of debtor assets in the UAE.
| Effect | What the law says | Article |
|---|---|---|
| On filing: the debtor’s property | From submission of a bankruptcy application, the debtor cannot dispose of its property, and disposals are invalid. Exclusions cover property that cannot be attached, property needed to support the debtor and its dependents, and legal costs | 15(2) |
| On filing: management | The debtor keeps managing its assets and business unless the court appoints a temporary trustee | 15(2) |
| On the court’s decision: pending claims | Filing alone does not stay claims. The court can order precautionary measures and a discontinuance of claims. On initiation of preventive settlement, claims are suspended for 3 months, extendable to a maximum of 6 months. On initiation of restructuring, claims are suspended until the plan is ratified. The effects of a bankruptcy decision are in later provisions that this guide does not cover | 34, 59, 92 |
| Court decisions | A decision of the Bankruptcy Court is a writ of execution and is enforceable at once. Its enforcement can be stayed only by the court | 7, 8 |
| A bad-faith application | If a debtor files only to harm creditors and halt their claims, they can claim compensation before the Bankruptcy Court | 33(4) |
If you are considering a filing, you can send us the facts on WhatsApp or through the Contact Us page.
Review Your Bankruptcy Filing and Its Legal Effects
Discuss your company’s financial position, proposed application and existing creditor proceedings with Leaders Advocates. Ask what filing changes immediately, what requires a court decision and how the next procedural steps should be handled.
Questions about filing for bankruptcy in Dubai
Relevant Legal Services
For business insolvency, preventive settlement, financial restructuring, creditor claims and bankruptcy-related proceedings, explore our commercial litigation lawyers in Dubai, debt recovery lawyers in Dubai and contract lawyers in Dubai. The appropriate legal work depends on whether the client is a debtor or creditor, the type of business, the financial evidence and the procedure being considered.
Related Legal Guidance
- Federal Decree-Law No. 51 of 2023: Financial Restructuring and Bankruptcy Law
- Cabinet Resolution No. 94 of 2024: Executive Regulation
- Federal Decree-Law No. 19 of 2019: Personal Insolvency Law
- How Can I Settle My Debt Without Going to Court in the UAE?
- Can Debtor Assets Be Seized for Debt in the UAE?
- Commercial Litigation Legal Services in Dubai
Need Legal Help Filing for Bankruptcy in Dubai?
To discuss a filing, speak to our lawyers on WhatsApp or use the Contact Us page. Our commercial litigation, debt recovery and contract legal services can help assess the available financial records, filing requirements and applicable proceedings.
