Unpaid loan in Kuwait.
Unpaid loan in Kuwait can lead to a travel ban and criminal cases if left unaddressed. If you have lived and worked in Kuwait you are most likely to have a credit card or a loan. While a majority are able to pay the liabilities some are not.
What happens if you cannot pay your credit card or loan instalments in Kuwait.
In such cases where the customer is not able to close the liability, it may lead to a long and unwanted series of events. This is especially difficult for the ex-pats in Kuwait. As almost a quarter of the residents are ex-pats.
Most of the secured products are given against guarantees such as cheques, employee benefits. In the event the customer is not able to keep up with the payments, they use these guarantees.
Is it a criminal offence to not pay back the bank.
Although Kuwaiti law does not recognize a default as a criminal offence the creditor still holds the discretion to file an appeal to the authorities with the relevant proof of default, they then decide to either grant or deny the plea. If you are found guilty the maximum term of imprisonment is 6 months. Although this term is decided on a case to case basis it is usually a month. Irrespective of the term served in jail the debtor will be asked to pay the liability in full even after a full term of 6 months is served.
