Default in payment of Credit Card Account

Katanungang legal? May sagot d’yan! Alamin ang mga batas at iyong karapatan dito sa UAE. Kung ikaw man ay nangangamba sa iyong visa, nagbabalak ng annulment, magsisimula ng negosyo, may pinagkakautangan, problema sa pinapasukan, hinaharap na kaso o anumang usaping legal, sasagutin ng ating Kabayan Atty. Barney Almazar ang inyong mga katanungang legal dito sa UAE. Mag-email lamang sa barney@gulflaw.info

Default in payment of Credit Card Account

Atty. Barney, I am working here in Dubai for 3 years now, I applied for and was granted a credit card account from the bank. As security for the bank, they required me to sign post-dated cheques for the monthly payment of my credit card account. For the past 5 months, I was not able to pay my monthly due to the bank. I am having financial difficulty at the moment and my only source of income is my monthly salary, adequate enough to sustain my daily needs and monthly financial support to my family in the Philippines. Last week, I received an email notification from the bank informing me that I need to immediately settle my unpaid obligation or else their legal department will pursue a police case against me for the bounced cheques. I am financially broke and I am not in the position to pay in full my outstanding obligation. What is the best thing for me to do to settle my obligation? In case there is already a police case filed against me, if I voluntarily surrender and spend time in jail, will my obligation to pay the bank be extinguished? Thank you – Michael

 

On your first issue, I recommend that you communicate with your bank and ask for restructuring of payment for your credit card account. You and the bank will negotiate for the terms of payment. If you both agree, the bank shall prepare the Settlement Agreement for you to review and sign. Once signed, you may now start paying the bank based on the agreed restructured payment terms. It is important that you already have the approved and signed Settlement Agreement before you make any payment to the bank.

For your second question, the police case is criminal in nature and it is far different to your civil obligation to pay the bank. It is the court’s judgment that is satisfied when you pay the fine or serve the prison term. Your credit card account obligation remains and you are still required to settle and pay it with the bank. Worst scenario is, the bank may file a civil case against you even after the dismissal of the criminal case. 

 

Conjugal Properties in the Philippines will not be affected by the Divorce Decree obtained in the UAE

Atty. Barney, I have a Filipino cousin currently residing in the Philippines. She is married to a Filipino husband. She found out last month that her husband obtained a divorce decree here in Dubai. From the time they got married until now, my cousin lives in their conjugal home in Batangas City. It is the only conjugal property that they own. She received a text message from her husband, telling her that they are no longer married so she must vacate the property immediately and turn it over to her parents-in-law. Can the husband legally do that by virtue of the Divorce decree? – Annaliza

 

The marriage of your cousin and her husband is considered dissolved here in Dubai and in other jurisdictions which divorce is validly recognized. The Philippines does not recognize divorce for being contrary to public policy. The Divorce decree obtained by her husband in Dubai does not affect the legality and existence of their marriage. Hence, their marriage is still valid and existing in accordance with the Philippine laws. Your cousin remains the legal wife of her husband and being as such, she has the right to possess and occupy their conjugal home. Her husband cannot demand her to vacate the conjugal property. The Divorce decree itself is not validly recognized in the Philippines, therefore it will not have any effect to the properties owned by Filipino spouses. 

Atty. Barney is a Director at the Commercial Department of Gulf Law in the Middle East, Philippines and United Kingdom. Readers can visit www.gulflaw.info or call +971 4 444 9404 for further information. Facebook: www.facebook.com/filipinolawyersindubai

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