Personal / Individual Insolvency Services
Individual Insolvency Services UAE
Understand your real legal position before creditor pressure forces the decision for you.
Serious personal debt requires careful legal handling, and in the UAE it is governed separately from company liquidation. Farahat & Co. provides individual insolvency services for natural persons facing financial difficulty, covering case assessment, documentation, and support through the settlement or formal insolvency route under UAE law.
- Financial position review: a clear assessment of debts, assets, income, and creditor pressure.
- Route identification: determining whether a settlement of financial liabilities is still realistically available.
- Case preparation: organising the documentation and disclosures a court-led process requires.
- Creditor and procedural support: guidance on how creditor claims affect the direction of the case.
Personal insolvency should never be treated like routine paperwork. Timing, documentation, and the legal route chosen all materially affect the outcome, which is why an early, proper assessment matters.
Request a Confidential AssessmentOur Specialists In Personal / Individual Insolvency Services
Abdulla Al Shamssi - CA
Regulated Court Expert in Liquidation
M. A. Farahat – ACPA, CFE, CICA
Regulated Court Expert in Liquidation
As a Trusted Liquidation Consultant in the UAE, Farahat & Co. Offers the Following Liquidation Services:
What Is Personal Insolvency Under UAE Law?
Personal insolvency applies where a natural person is unable, or expected to become unable, to pay their debts as they fall due. It is governed by Federal Decree-Law No. 19 of 2019 Concerning Insolvency, a framework built specifically for individuals rather than businesses.
The law provides two main routes: a settlement of financial liabilities process, aimed at reorganising debt under court supervision without the case escalating further, and a formal insolvency and liquidation of assets procedure for cases where settlement is no longer realistic.
Courts look beyond the size of the debt itself, assessing whether the individual has genuinely stopped meeting payment obligations, typically for a continuous period exceeding forty working days, before a case is treated as meeting the legal threshold for formal insolvency proceedings.
Individual Insolvency Services vs. Company Bankruptcy
One of the most common points of confusion is assuming personal debt problems fall under the same law as business bankruptcy. They do not. Federal Decree-Law No. 51 of 2023 governs bankruptcy, insolvency, and restructuring for companies, merchants, and sole traders operating under a commercial licence, and is handled through specialised Bankruptcy Courts built around corporate restructuring.
Federal Decree-Law No. 19 of 2019 instead applies to non-trading individuals, such as salaried employees or freelancers acting outside a commercial licence, and follows a distinct court process, vocabulary, and set of protections. Getting this distinction right matters from the outset, since applying the wrong framework to a case, or assuming a liquidator will simply be appointed as it would be for a company, leads to delay and can weaken the individual’s legal position.
The Two Legal Routes for Personal Insolvency Services
Settlement of Financial Liabilities
Insolvency and Liquidation of Assets
Who Needs Individual Insolvency Services?
This service is relevant for individuals who are unable to pay personal debts on time, facing pressure from multiple creditors, or struggling with accumulated liabilities and no workable repayment structure in place. It also applies to people who are simply unsure whether their situation still fits a settlement route, or who are concerned that formal insolvency action may now be the only realistic option.
Timing matters more than most people expect. Many individuals wait until creditor pressure has already escalated before seeking proper guidance, by which point the range of available options has narrowed and the case may require a more difficult route than it would have earlier, when a settlement was still realistically achievable.
How Our Individual Insolvency Services Work
Initial Case Assessment
Review of Debts, Assets, and Financial Position
Documentation and Case Preparation
Creditor and Procedural Support
Work With Farahat & Co.’s Personal Insolvency Team
We help individuals assess their financial position properly, identify the correct legal route under UAE insolvency law, and prepare a structured, well-documented case, whether that means pursuing a settlement of financial liabilities or formal insolvency support.
