Debtors’ prison

Ahem:

“I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.”

With Dubai’s economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills). Some are said to have maxed-out credit cards inside and notes of apology taped to the windshield.

I guess you can't say you were simply late in assembling the funds.  Debtors account for about forty percent of the Dubai prison population.  Here is much more information.  For the pointer I thank Chris.

Comments

I think I'll fare well when they wall off Cali Escape-From-NY style. Not all of that 60k in student loans went for the framed piece of TP. I also aced Krav Maga 101.

Don't tell this to the American Bankers Association. In the US, we have a different system: we have a system of home confinement.

what impact could this have on gold prices?

That means a passport and plane ticket is a moral hazard.

What is Dubai World's slogan?

"Beach Front Property: They aren't making any more of it...oh wait."

So, is this why they all tool around in Mercedes? If it's not a rule, it should be. Kind of like our rule here in the US that requires 15 passenger vans and old Civics.


With Dubai’s economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills).

After Dot-Com crash and especially after 9-11, SFO and SJC parking lots were full of mostly small, mostly Japanese cars, mostly Civics, mostly leased. The lessees, mostly H1B Indian coders, simply left cars fot leassors to pick up the pieces.

Fortunately most of lessors were indian-owned businesses that did very well during Dot-Con times leasing cars to their countrymen with no credit history.
It was time to pay the piper.

From what I've read, it is common practice in the UAE to require post-dated checks as "security" for a loan, even though this practice is technically illegal. The lender will collect its payment by cashing each check on the associated due date. If your account does not have enough money to cover the payment, then you are guilty of bouncing a check which is a criminal offense.

Is the government of Dubai going to imprison itself for not paying its debts?

At some point in history, having an unpaid debt would have been considered sufficient grounds for imprisonment. The debtor would be held in a designated debtor's prisonprisonprison until his or her family could satisfy the creditor's demands. A debtor's prisonprisonprison during the Middle Ages was often a large communal cell where both men and women lived in filthy conditions for months or even years, depending on the size of the debt and their family's ability to raise the money. Some debtors were allowed to work off their own debts through labor, but many were condemned to remain behind bars

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