Every day, thousands file for bankruptcy to get out of a serious debt problem they are facing affecting the person's bank accounts and lives. Causes leading someone to this unfortunate situation are many and here we will attempt to highlight some of the more common ones. Regardless of the cause, bankruptcy is the go-to solution for a lot of people finding themselves in financial dire straits.

1. COMMON CAUSES OF BANKRUPTCY
https://farahatco.com/blog/reasons-why-people-go-bankrupt-in-uae/

2. Int.
• Every day, thousands file for bankruptcy to get out of a serious debt problem they
are facing affecting the persons bank accounts and lives. Causes leading someone
to this unfortunate situation are many and here we will attempt highlight some of
the more common ones. Regardless of the cause, bankruptcy is go-to solution for
a lot of people finding themselves in financial dire straits.

3. What are the causes of Insolvency Bankruptcy in UAE?
• Medical Expenses
• Sudden Unemployment
• Living beyond your means
• Divorce or Separation
• Unexpected Expenses

4. 1- Medical Expenses
• Medical expenses count for a large number of bankruptcy cases due to exorbitant
hospital bills or time lost from work owing to serious injury. At times even stellar
health insurance cannot protect you from complex disease treatment or expensive
operations that can land you several thousands in debt. As last resorts people may
dig in to their life savings, home equity or funds put aside for their children’s
education in order to keep up with these spiraling medical bills.
• When the money runs out bankruptcy maybe the only course of action left for the
patient.

5. 2- Sudden Unemployment
• 2020 has been a very unpredictable period due to Covid-19 seeing millions losing
their jobs because of it. Due to these layoffs or advised resignations this sudden
loss of income can be extremely devastating.
• If no money has been put aside for a rainy day it can very hard.This is because
mandatory payments like rent, loans, car payment and education cannot be paid.
Once again – Bankruptcy may be your only recourse.

6. 3- Living beyond your means
• This one is common and comes about when people cannot keep up with the
lifestyle they are trying to live. In time – they cannot afford to pay even the
minimum payment requirements for these things. Collecting funds from nearest
and dearest buys some time to try repair their situation. However, if all is not
rectified by the borrower filing for bankruptcy maybe the only option.

7. 4- Divorce or Separation
• Divorce is a big expense to many since one household will now become split in
two.This raises expenses exponentially while also affecting incomes for either of
both parties. If you co-signed or opened a joint account with your soon-to-be-ex
you may still be liable for that debt. Add to all of this exorbitant lawyer fees, the
separation of assets, possible child support and the possibility of two households
up keeps maybe too much for one to bear.

8. 5- Unexpected Expenses
• Significant loss can come about from natural disasters such as floods, earthquakes
and floods and having no insurance. Other things such as thefts and fires can also
lead to the same result of bankruptcy.

9. Approved Liquidators in UAE
• From the information that we’ve given, we here at Farahat & Co recommend that
businesses in UAE evaluate the financial position of their companies, devise debt
recovery strategies, and formulate credit repayment strategies together with
approved UAE liquidators.This may be negotiating short term deferments and
increasing length of repayment of debts plans.
• When a business is still unable in settling its debts, it is always a good idea to seek
legal advice and financial advice from experts on the company liquidation process
in Dubai UAE. A seasoned liquidators in Dubai will be able to present you with
options in dealing with your specific issues and address your business’ needs and
requirements. We are also able to tailor solutions based on your personal
preferences.

10. Contact Us
• WhatsApp Only: +971 52 6922588
• Mobile: +971 55 370 1232
• WhatsApp / Call: +971 55 4828368
• Telephone: +971 4 2500251
• Email: sales@farahatco.com