Person named on loan is liable for UAE debts, and not his family

"My family lived in the UAE for almost 10 years. My father lost his job in December 2015 and because of the market conditions he has not been able to secure a job as yet, but he still had credit card and loan payments every month. Will I be able to enter Dubai without any legal issues?"

My family lived in the UAE for almost 10 years. My father lost his job in December 2015 and because of the market conditions he has not been able to secure a job as yet, but he still had credit card and loan payments every month. Our family has moved back to India for now but my sister is still living there and I would like to go visit her. But will I be able to enter Dubai without any legal issues? My visa has recently been renewed, so it is valid until 2018. My mother and I don't have any debts in our name. I have my return ticket booked for March 8 and I would love to go as long as I know it's safe for us to re-enter the country. KC, India

As I understand it, the debts that are outstanding are in the name of KC’s father only and thus he is the only person legally responsible for these debts. Only the person who has borrowed the money, or people if it is a joint loan or credit card, have liability for the repayments. If there has been a guarantor for a loan, not something we see often these days, the guarantor is also fully responsible. Any liability does not extend to other family members. There is no indication that any payments are overdue either, so assuming they are up to date the banks would not have raised a police case against KC’s father anyway. If, however, the payments are in arrears there may be police cases against him personally and he would need to check this if he intends to visit the UAE at any time.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at [e-mail]. Follow her on Twitter at @FinancialUAE.

The advice provided in our columns does not constitute legal advice and is provided for information only.

Follow us on Twitter @TheNationalPF