UAE law: insolvent debtor may face early payment demand
This is stipulated in Article 361 of the Civil Transactions Law, “An obligation deferred to a term shall not be effective until the term falls due. The creditor may, before the term falls due, take such measures as are necessary to preserve their right, including requesting security if they fear the debtor's insolvency and base this on a reasonable cause.”
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As a general rule, when an obligation is subject to a future term, the obligation is established, its enforcement is deferred until the agreed-upon term becomes due and the seller is required to wait until the expiry of the agreed period before demanding payment. However, the debtor’s right to the term shall lapse if he is adjudged bankrupt, insolvent, or placed under interdiction, or failed.
Source
Reported by: Gulf News 16 Aug 2026 Read the original ↗ More from Gulf News →
Quick answers
Who reported this?
Gulf News (UAE).
When was it announced?
16 Aug 2026.
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Read the original at Gulf News: https://gulfnews.com/ask-gulf-news/ask-gulf-news-can-a-company-ask-for-car-payments-early-after-insolvency-1.500642347
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