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Bankruptcy, Insolvency & Financial Distress Support

Bankruptcy, insolvency and financial distress matters require a clear understanding of the debtor’s financial position, outstanding debts, cash flows, existing obligations and creditor claims.

These matters are not limited to presenting figures. They require analysis of the causes of financial distress, the ability to meet obligations and the actual financial position at the time of review.

In bankruptcy and insolvency matters, it is not enough to identify debts; the financial position, causes of distress and actual ability to pay must also be understood.

Financial Position Analysis

We review assets, liabilities, outstanding debts, cash flows and existing claims to understand the true financial position of the debtor or financially distressed business.

This analysis helps determine whether the financial difficulty is temporary or continuing, and how it affects the debtor’s ability to meet financial obligations.

What Do We Review?

  • Financial statements and accounting records.
  • Lists of creditors and debtors.
  • Outstanding debts and maturity dates.
  • Cash flows and bank accounts.
  • Available assets and resources.
  • Contracts and existing obligations.
  • Creditor claims and supporting documents.
  • Cases, attachments, enforcement actions or claims related to the matter.

Causes of Financial Distress

Financial distress may result from liquidity shortages, accumulated debts, declining revenues, suspended operations, disputes, attachments or obligations that exceed the debtor’s ability to pay.

A financial review helps identify the actual causes of distress and whether the issue relates to liquidity, operational losses, accumulated obligations or other relevant factors.

Financial distress is not a single figure; it is the result of financial, operational and legal factors that should be reviewed together.

Creditor Claims & Financial Obligations

In bankruptcy, insolvency and financial distress matters, creditor claims and existing obligations are a key part of the review.

This may require reviewing the nature of the debts, supporting documents, maturity dates and their connection to the business activity or facts under review.

Some matters may also require analytical schedules of debts, obligations and claims to present the financial position in a clear and organised manner.

Personal Insolvency & Sole Establishment Owners

In addition to bankruptcy and financial distress matters involving companies, some individuals may experience financial difficulties that affect their ability to meet their financial obligations.

In such cases, personal insolvency procedures may become relevant. These procedures differ from corporate bankruptcy proceedings in terms of their legal framework, requirements and applicable processes.

This may include sole establishment owners, individuals engaged in commercial or professional activities, or persons facing significant personal financial obligations that exceed their ability to pay.

Assessing Eligibility and Available Options

The requirements, procedures and supporting documentation may differ depending on the circumstances of each case and whether the matter relates to corporate bankruptcy, personal insolvency or other forms of financial distress.

For this reason, reviewing the available documents and financial information is often an important first step in determining the most appropriate course of action and understanding the available options.

Not every financial distress situation necessarily requires bankruptcy or insolvency proceedings.

The most suitable approach may vary depending on the financial position, liabilities, claims, available assets and the stage that the matter has reached. A professional review can help identify the available options before any action is taken.

Advisory Reports for Bankruptcy & Insolvency Matters

Financial advisory reports may help clarify the financial position, analyse the causes of distress, review cash flows, classify debts, examine creditor claims and provide a professional perspective that helps the client or legal representative understand the matter more clearly.

When Might You Need This Service?

  • Financial distress or inability to meet financial obligations.
  • Need to review the financial position before taking action.
  • Bankruptcy or financial restructuring matters.
  • Personal insolvency matters.
  • Debt and creditor claim analysis.
  • Cash flow and financial position review.
  • Assessment of bankruptcy or insolvency eligibility.
  • Evaluation of available options before taking legal action.
  • Support for lawyers, business owners or stakeholders.
  • Preparation of financial schedules and analytical reports.

A proper understanding of the financial position helps bankruptcy, insolvency and financial distress matters to be handled more clearly and effectively.

Do You Need Support for Bankruptcy, Insolvency or Financial Distress Matters?

Contact us to review your financial position, analyse debts, cash flows and creditor claims, and obtain professional financial support tailored to the circumstances of your case.

Important Notice: The information provided on this page is intended for general informational purposes only and does not constitute legal, tax, accounting, or professional advice. It should not be relied upon as a substitute for reviewing the applicable laws, regulations, decisions, and official guidance issued by the competent authorities in the United Arab Emirates.

The appropriate legal, tax, or accounting treatment may vary depending on the specific facts and circumstances of each case.

If you require professional advice or assistance relating to your particular situation, please contact us and our team will be pleased to review your case and provide appropriate support.


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Al Basma Accounting & Bookkeeping provides accounting, audit, taxation, financial advisory, expert reporting, and company formation services in the United Arab Emirates.
Al Basma is also an FTA Approved Tax Agency providing VAT, Corporate Tax, and Tax Compliance services in accordance with UAE tax regulations.

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