Retirement is not a reason to declare insolvency for a housing loan

Retirement is not a reason to declare insolvency for a housing loan
Retirement is not a reason to declare insolvency for a housing loan

The Abu Dhabi Court for Family, Civil and Administrative Cases ruled to reject a debtor’s insolvency request, submitted by a man who obtained a housing loan and before the end of the installment period he had an accident that led to his retirement from work, and the court indicated that retirement is not a reason for declaring insolvency.

In the details, a man filed a lawsuit in which he requested a ruling on the issuance of the “debtor’s insolvency” decision and the subsequent procedures against all creditors, indicating that he had obtained a housing loan from a local bank, with a financial value of three million and 300 thousand dirhams, where he proceeded to repay The financial fees incurred by the loan and the monthly installments, periodically and at the specified time without delay, until a decision was issued by his employer stating that it was decided to refer him to retirement due to an accident, which led to him receiving a retirement salary less than the salary he was receiving during the work period.

In his request submitted to the court panel, the plaintiff explained that he had committed himself to paying the monthly installments, from his monthly salary, and that the total value of the sums owed by him amounted to 512 thousand dirhams, and since he was unable to pay, he requested the court panel to rule on his requests.

For its part, the court clarified in the rationale for its ruling that the debtor may submit to the court a request without contesting anyone in it to settle his financial obligations. If he stops paying any of his debts on their due dates for a period of more than 65 working days.

The court indicated that the plaintiff was unable to prove that the payment of the debt is the subject of the insolvency case, and therefore his case is unsupported, and what he clings to is not affected by his indebtedness due to the declarations, and his inability to fulfill the sums of money he owes as a result of the reasons he mentioned in his request from The decrease in his monthly salary after he was referred to retirement, stressing that these reasons are not considered in themselves a reason that necessitates declaring his insolvency, especially since the documents indicate the existence of sources of income for him, which is the retirement pension, and the court ruled to reject the request and obligated the applicant to pay the expenses.

The remaining amount of the loan amounted to 512 thousand dirhams, which the plaintiff failed to pay.

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