Bankruptcy Law
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- Article 1In applying the provisions of this Law, the following words and expressions shall have the meaning indicated opposite each: Ministry: Ministry of Commerce and Industry.…
- Article 1 الاوليThe provisions of the accompanying Law concerning bankruptcy shall be put into effect. The provisions of the laws on Criminal Procedures and Trials, Civil and Commercial…
- Article 2The provisions of this Law shall apply to: (1) Every natural person established to have the status of a merchant. (2) Kuwaiti companies and branches of foreign…
- Article 2 الثانيهThe court competent to declare bankruptcy pursuant to Article 563 of the Commercial Law shall, of its own motion, refer the bankruptcy proceedings, disputes and…
- Article 3An application for preventive settlement, restructuring or declaration of bankruptcy concerning indebtedness owed by any of the entities specified in this Article may…
- Article 3 الثالثهThe provisions of the preceding Article shall not apply to actions and challenges already adjudicated, or adjourned for pronouncement of judgment before the date this…
- Article 4A bankruptcy court consisting of one or more circuits shall be formed at the seat of the Court of First Instance. A decision specifying its seat shall be issued by the…
- Article 5Subject to the powers conferred under this Law upon the Bankruptcy Judge, the Bankruptcy Court shall have jurisdiction to adjudicate disputes arising from the…
- Article 5 الخامسهThe aforementioned Decree-Law No. 2 of 2009 is repealed, and Articles 555 to 800 of the aforementioned Decree-Law No. 68 of 1980 are repealed. Every provision…
- Article 6Judgments issued by the Bankruptcy Court pursuant to this Law shall be enforceable on the basis of their draft and without service. No objection to their enforcement may…
- Article 6 السادسهThe Prime Minister and the Ministers—each within his respective competence—shall implement this Law. It shall be published in the Official Gazette and shall enter into…
- Article 7A department called the Bankruptcy Department shall be established at the Court of First Instance, headed by a judge of a rank not lower than counsellor and comprising a…
- Article 8Decisions issued by the Bankruptcy Judge pursuant to this Law shall constitute enforceable instruments, and the Bankruptcy Department shall affix the executory formula…
- Article 9(1) Receiving and registering applications submitted under the provisions of this Law. (2) Directing notifications to the persons concerned under the provisions of this…
- Article 10The Bankruptcy Department shall present all applications, notifications, grievances and memoranda submitted to it to the head of the Department or his deputy immediately…
- Article 11By a decision of the Minister, one or more committees called the Bankruptcy Committee shall be formed, consisting of at least three members from among persons who may…
- Article 12The Bankruptcy Committee shall be competent for the following: (1) Supervising restructuring, bankruptcy and composition proceedings concerning debts subject to the…
- Article 13The debtor may submit to the Bankruptcy Administration an application to commence preventive settlement, restructuring or declaration of bankruptcy proceedings within a…
- Article 14Any creditor holding an ordinary debt, or a group of creditors holding ordinary debts numbering not fewer than three, where the debtor’s indebtedness to that creditor or…
- Article 15If the creditor withdraws the demand for his debt because that debt has been settled or an agreement has been reached with the debtor to defer its repayment, or for any…
- Article 16The supervisory authority may submit an application to open restructuring proceedings or proceedings for a declaration of bankruptcy in respect of any debtor subject to…
- Article 17If more than one application is submitted concerning the indebtedness of the same debtor, they shall all be consolidated and proceedings taken concerning them jointly.…
- Article 18If the debtor is a company, an application may be submitted concerning its debts even if it is in liquidation or a judgment has been issued invalidating it and it has…
- Article 19Subject to the provision of Article 14 of this Law, the application may be submitted after the debtor’s death, retirement from trade or loss of capacity, within the two…
- Article 20The application shall be submitted by the debtor or the regulatory authority, specifying the procedure requested and the reason for it, and shall be accompanied by the…
- Article 21If the applicant is unable to submit the data, information and documents in accordance with the preceding Article because of an inability to obtain them from the entity…
- Article 22The application shall be submitted by the creditor, stating therein its grounds, and accompanied by a copy of the notice referred to in Article 14 of this Law, and any…
- Article 23Except for applications submitted by supervisory authorities, the applicant must deposit with the court treasury a sum of money or a bank guarantee whose value shall be…
- Article 24The Bankruptcy Administration shall notify the Bankruptcy Committee of applications to commence proceedings and their attachments and of every flight and measure taken…
- Article 25Within ten days from the date on which it is notified of the application, unless the bankruptcy judge specifies a shorter or longer period for it, the Bankruptcy…
- Article 26The Bankruptcy Department shall notify the debtor of the application within ten days from the date of its submission if it was submitted by someone else. The debtor…
- Article 27Except in cases where the application to open proceedings is submitted by the debtor, the applicant Law Index 1393 Home Page Bankruptcy Law Law No. 71 of 2020…
- Article 28The Bankruptcy Judge may summon any person possessing information relevant to the application. He may order that any natural or legal person be joined in the proceedings…
- Article 29The Bankruptcy Judge shall decide the application, within ten days from the date of expiry of the period specified for responding to it, by issuing a decision opening…
- Article 30The Bankruptcy Judge may, on his own initiative or upon an application by the debtor, a creditor, the trustee or other interested parties, amend the provisional date of…
- Article 31The Bankruptcy Judge shall issue his decision declaring the application inadmissible if the documents and data provided for in Article 20 of this Law have not been…
- Article 32The bankruptcy judge may, upon an application submitted to him by the regulatory body or any interested party, decide to take any precautionary measures, including…
- Article 33Within ten days from the date of issuance of the bankruptcy judge's decision to commence proceedings, reject them, or declare them inadmissible, the Bankruptcy…
- Article 34If the Bankruptcy Judge decides to accept the opening of restructuring or bankruptcy declaration proceedings, he shall appoint, in the same decision, the trustee…
- Article 35The bankruptcy judge may, on his own motion or at the request of the debtor or the Bankruptcy Committee, instruct the Bankruptcy Committee to nominate more than one…
- Article 36In all cases in which a decision appointing a trustee is assessed after approval of the list of creditors, or the Bankruptcy Judge issues a decision replacing the…
- Article 37If a legal person is appointed as trustee, it shall designate one or more representatives to perform the trustee’s duties, and the trustee shall be responsible for its…
- Article 38The trustee appointed pursuant to the provisions of this Law may submit to the Bankruptcy Department any application for a decision that would assist him in performing…
- Article 39None of the following persons may be appointed as trustee: 1) A creditor. (2) A related party in relation to the debtor. Any person against whom a final and conclusive…
- Article 40The trustee shall perform its duties under the supervision of the Bankruptcy Administration, shall pursue the proceedings expeditiously, and shall ensure that it takes…
- Article 41In cases where the trustee is entrusted with managing the debtor’s assets and business, the trustee shall preserve those assets and represent the debtor in all acts…
- Article 42In the cases referred to in the preceding Article, the trustee may, with permission from the Bankruptcy Judge issued after hearing the debtor’s statements or notifying…
- Article 43Immediately upon his appointment to manage the debtor’s assets and business, the trustee shall receive, inspect and retain the debtor’s correspondence relating to his…
- Article 44The trustee shall deposit any amount he receives within the proceedings into a special account for disbursement designated by the Bankruptcy Judge within a period not…
- Article 45The trustee shall record all acts relating to the administration of the debtor’s assets and business in the books and records prepared for that purpose, and recording…
- Article 46The debtor and the Bankruptcy Committee, where the indebtedness is subject to its supervision, may object before the Bankruptcy Judge to the trustee’s acts before their…
- Article 47The trustee shall submit to the Bankruptcy Department and the Bankruptcy Committee, as the case may be, a monthly report Index of the Law 1397 Home Page Bankruptcy Law…
- Article 48The trustee, debtor or any creditor may request the bankruptcy judge to issue a decision defining the scope of the trustee's powers with respect to a specific matter or…
- Article 49The trustee shall collect his fees specified in the decision appointing him and the necessary expenses he incurs from the debtor’s assets known to the Bankruptcy…
- Article 50The Bankruptcy Judge may, on the Judge’s own initiative or upon the application of the debtor or the Bankruptcy Committee, charge the Bankruptcy Committee with…
- Article 51The bankruptcy judge may, upon a reasoned application submitted by the Bankruptcy Committee, a supervisory authority, a creditor, the supervisor or the trustee, or of…
- Article 52The inspector may, for the purpose of carrying out the task assigned to him, request to hear the testimony of any person without administering an oath. He may also…
- Article 53The inspector shall complete the task he is assigned to perform and submit a report Bankruptcy Administration setting out how he performed it and the results he reached…
- Article 54The bankruptcy judge may at any time, after obtaining the opinion of the Bankruptcy Committee if the proceedings relate to debts subject to the Committee's supervision,…
- Article 55Notifications made under the provisions of this Law by the Bankruptcy Administration, the Bankruptcy Committee, the trustee, the inspector, the debtor, the creditors,…
- Article 56The Bankruptcy Administration, the Bankruptcy Committee, the trustee, the monitor, the inspector, the debtor, the representative of the creditors’ committee and the…
- Article 57As an exception to the rules relating to service of judicial documents stipulated in the Civil and Commercial Procedures Law, and without prejudice to cases in which…
- Article 58Subject to the provisions established in this Law concerning an application to commence proceedings, the debtor may submit an application to commence preventive…
- Article 59Subject to the provision of Article 20 of this Law, the debtor shall attach the following to the application to commence preventive settlement proceedings: 1) The…
- Article 60Management of the Debtor’s Business and Assets After issuance of the decision opening preventive settlement proceedings, the debtor shall remain in charge of managing…
- Article 61Issuance of the decision opening preventive settlement proceedings shall result in a stay of claims for the three months following the date of issuance of the decision.…
- Article 62During the claims moratorium period, the debtor shall exercise the necessary care to persuade his creditors to vote in favor of the preventive settlement proposal. He…
- Article 63The period of the stay of claims shall end upon the occurrence of any of the following cases: (1) Ratification by the Bankruptcy Judge of the preventive settlement…
- Article 64The issuance of a decision opening preventive settlement proceedings shall not cause the debts owed by the debtor to become due, nor suspend the accrual of interest on…
- Article 65The role of the issuance of a decision opening preventive settlement proceedings shall not result in the suspension or termination of the debtor’s existing contracts,…
- Article 66The Bankruptcy Court may, upon the debtor’s application, order the rescission of any contract in force to which the debtor is a party if this is necessary to enable him…
- Article 67The debtor may borrow or obtain banking facilities—of whatever type—with or without security, in accordance with what is set out in the application to commence…
- Article 68The Bankruptcy Judge may, upon the debtor’s application—and after obtaining the opinion of the Bankruptcy Committee, where the indebtedness is subject to its…
- Article 69New financing may be secured by creating a pledge over any of the debtor’s unpledged or pledged assets. In the latter case, the pledge shall rank after the pledge or…
- Article 70Within ten days of issuance of the decision opening preventive settlement proceedings, the debtor shall coordinate with the creditors to form a creditors’ committee…
- Article 71The debtor shall deposit with the Bankruptcy Administration, within ten days after expiry of the period specified in the Law Index 1403 Home Page Bankruptcy Law Law No.…
- Article 72The creditors’ committee shall, within ten days from the date on which it is notified of the decision forming the committee, identify the matters in which it delegates…
- Article 73The preventive settlement proposal must include the following: 1) The debtor's plan for carrying on his activity. (2) Classification of the categories of creditors, the…
- Article 74The debtor shall deposit a copy of the preventive settlement proposal with the Bankruptcy Department, accompanied by a summary of the proposal, within three months from…
- Article 75The proposal may be founded on the basis of the debtor relinquishing some of his assets in exchange for settlement of all or some of his debts, and consequently paying…
- Article 76The debtor shall invite the creditors to approve the preventive settlement proposal by a notice containing the time and place of the meeting, in accordance with the…
- Article 77The right to vote on the preventive settlement proposal shall be restricted to creditors affected by the proposal, and no party related to the debtor may participate in…
- Article 78The debtor shall provide a full explanation of the terms of the preventive settlement proposal during the meetings held to discuss the proposal and any amendments…
- Article 79The preventive settlement proposal shall satisfy the requirement for creditors' approval if the required majority approves it. If the proposal does not obtain the…
- Article 80Minutes shall be drawn up of what took place at the meeting to vote on the preventive settlement proposal, to be signed by the debtor, the creditors present who are…
- Article 81The debtor shall, within ten days from the date of approval or rejection of the preventive settlement proposal, Law Index 1406 Home Page Bankruptcy Law Law No. 71 of…
- Article 82Within ten days from the date on which the Bankruptcy Administration receives the notification of the creditors’ approval of the preventive settlement proposal and its…
- Article 83The preventive settlement proposal shall satisfy the standards of fairness if the following are met: (1) The creditors receive adequate information and sufficient time…
- Article 84The bankruptcy judge shall issue a decision refusing or suspending confirmation of the proposal if any of the following circumstances occurs: (1) If the procedures for…
- Article 85Any affected creditor who did not vote in favour of the preventive settlement proposal may submit a grievance to the Bankruptcy Administration against the creditors’…
- Article 86The preventive settlement proposal ratified by the Bankruptcy Judge shall be effective against all creditors covered by it, including creditors who rejected the proposal…
- Article 87The debtor shall implement the preventive settlement proposal in accordance with what the creditors have approved and the bankruptcy judge has ratified. He shall also,…
- Article 88The debtor may, at any time during implementation of the preventive settlement proposal, invite his creditors to discuss any amendments he considers necessary to make to…
- Article 89The Bankruptcy Court may, upon an application submitted to it by an affected creditor during the period following the decision ratifying the preventive settlement…
- Article 90Termination of preventive settlement proceedings pursuant to items 1 and 2 of the preceding Article shall result in the guarantor's discharge from the guarantee provided…
- Article 91Termination of preventive settlement proceedings due to the invalidity of their procedures shall result in the discharge of a good-faith surety who guaranteed…
- Article 92The Bankruptcy Court may include in its judgment terminating proceedings and declaring bankruptcy the placing of seals on the debtor’s assets. The court may also include…
- Article 93The bankruptcy judge may, upon an application submitted to him during the period following the decision amending the preventive settlement proposal and before completion…
- Article 94If the Bankruptcy Judge decides to terminate preventive settlement proceedings, he may, upon an application Law Index 1410 Home Page Bankruptcy Law Law No. 71 of 2020…
- Article 95Dispositions made by the debtor after issuance of the decision ratifying the preventive settlement proposal shall be effective against the creditors. They may not seek…
- Article 96Termination of preventive settlement proceedings shall not oblige creditors to return amounts they received in payment of debts before issuance of the judgment or…
- Article 97Subject to the provisions prescribed in this Law concerning an application to open proceedings, the debtor, creditors, and supervisory authority may submit an…
- Article 98Subject to the provision of Article 20 of this Law, the following shall be attached to the application to commence restructuring proceedings: (1) The data, information…
- Article 99Following the issuance of a decision opening restructuring proceedings, the debtor shall continue to manage its business and assets under the supervision of the trustee,…
- Article 100If the bankruptcy judge has appointed an interim trustee to manage the debtor’s business and assets, the trustee shall cease managing the debtor’s assets and business…
Articles 101 – 20099
- Article 101The Bankruptcy Judge may, upon a reasoned application submitted by the trustee, a creditor or the Bankruptcy Committee—as the case may be—decide, within ten days from…
- Article 102The issuance of a decision opening restructuring proceedings shall result in a stay of claims from the day following the date of issuance of that decision until the date…
- Article 103The claims moratorium period shall end upon the Bankruptcy Judge’s ratification of the restructuring plan or the issuance of a decision by the Bankruptcy Judge…
- Article 104The provisions prescribed in the Part of this Law concerning preventive settlement shall apply to contracts, new financing, and the creditors’ committee. Second Section…
- Article 105The Bankruptcy Administration shall notify the trustee of the decision appointing him within ten days from the date of its issuance, and shall provide him with all…
- Article 106The trustee shall prepare a register in which he records all the debtor’s creditors known to him and shall submit an updated copy of the entries in that register to the…
- Article 107The trustee may request any data or information relevant to the debtor’s assets or business from any person possessing that information. Every person possessing…
- Article 108All creditors, even if their debts are not due, are secured by a mortgage or preferential right, or are not established by final and conclusive judgments, shall deliver…
- Article 109A creditor who has received an advance payment on account of his claim from the debtor's guarantors or third parties shall deduct what he has received from any claim he…
- Article 110The trustee shall verify the debts within one month from the date of expiry of the period specified in paragraphs 1, 2 of Article 105 of this Law, and may seek the…
- Article 111The debtor and every creditor, even if its name does not appear on the list of debts, may lodge a grievance with the Bankruptcy Administration concerning the debts…
- Article 112After the expiry of the period stipulated in the preceding Article, the Bankruptcy Judge shall approve a final list of undisputed debts, and the trustee shall annotate…
- Article 113The Bankruptcy Judge may, before deciding the grievance or the appeal brought against the judgment rendered thereon, decide to admit the debt provisionally in an amount…
- Article 114If the dispute relates to the security for the debt, it must be provisionally admitted as an ordinary debt.
- Article 115The share of a provisionally admitted debt shall be reserved from the proceeds of the sale of the debtor’s assets and upon any distribution to creditors under the…
- Article 116A creditor who has not submitted the documents supporting his debt within the period specified in Article 104 of this Law may submit an application to the trustee for…
- Article 117If the bankruptcy judge issues a decision opening restructuring proceedings, the debtor shall, under the trustee’s supervision, prepare the restructuring plan. The…
- Article 118The restructuring plan must include the following: 1 - The debtor's plan for carrying on his activity. 2 - Classification of the categories of creditors, the amounts due…
- Article 119The trustee shall notify the Bankruptcy Administration and the Bankruptcy Committee, if the debt is among the debts subject to its supervision, every month of the…
- Article 120Within the time limit specified in Article 117 of this Law, the debtor shall notify the trustee, the Bankruptcy Committee—if the indebtedness is subject to its…
- Article 121The plan may be based on the debtor relinquishing all or some of its assets in exchange for settlement of all or some of its debts, and consequently paying all the…
- Article 122Except for the provisions contained in this Section, the provisions contained in the Part concerning preventive settlement shall apply to approval of the restructuring…
- Article 123The debtor shall invite creditors to approve the restructuring plan by means of a notice Law Index 1417 Home Page Bankruptcy Law Law No. 71 of 2020 Promulgating the…
- Article 124Within a maximum period of ten days from the date on which the required majority approves or rejects the restructuring plan, the trustee shall notify the Bankruptcy…
- Article 125The provision of the final paragraph of the preceding Article shall apply to every decision issued by the Bankruptcy Judge refusing to ratify the plan. Implementation of…
- Article 126The trustee shall supervise implementation of the restructuring plan throughout the duration of the plan and until its implementation is completed. If the indebtedness…
- Article 1271 - Monitor the progress of the plan and notify the Bankruptcy Administration and the Bankruptcy Committee—as applicable—of any failure to implement it. 2 - Ensure that…
- Article 128The debtor may, at any time during implementation of the restructuring plan, after notifying the trustee and the Bankruptcy Committee if the indebtedness is subject to…
- Article 129The Bankruptcy Judge may, upon an application submitted to him during the period following the decision ratifying the restructuring plan and before completion of the…
- Article 130If the Bankruptcy Judge decides to terminate the restructuring proceedings, he may, upon an application submitted to him by the debtor, the trustee, the supervisory…
- Article 131Subject to the provisions prescribed in this Law concerning the application to open proceedings, as well as the cases set out in the Part concerning preventive…
- Article 132In all cases in which the Bankruptcy Judge issues his decision to commence bankruptcy declaration proceedings, the Bankruptcy Administration shall refer the file of the…
- Article 133If a list of debts has not previously been prepared in accordance with the provisions set out in the Part concerning restructuring proceedings, the trustee shall prepare…
- Article 134No account shall be taken of any claims previously rejected by the Bankruptcy Judge pursuant to the provisions of this Law, Index of the Law 1420 Home Page Bankruptcy…
- Article 135The trustee shall not be obliged to conduct or complete an examination of debts or prepare a list thereof if it becomes apparent to him that the proceeds of the sale of…
- Article 136The bankruptcy judge shall appoint an employee of the Bankruptcy Department to affix seals, within ten days from the date of issuance of the decision opening bankruptcy…
- Article 137Seals may not be affixed to clothing, movables and items necessary for the debtor and his dependants, which shall be delivered to him against a list signed by him. The…
- Article 138The Bankruptcy Judge shall, upon the trustee's request, order the removal of the seals the inventory of the debtor's assets. Removal of the seals and the inventory must…
- Article 139The inventory shall be conducted in the presence of the Bankruptcy Judge or his delegate for that purpose and the trustee. The debtor shall be notified of the inventory…
- Article 140The Public Prosecution shall have the right to attend the inventory-taking, and may at any time request to inspect the papers and books relating to the bankruptcy estate…
- Article 142After the inventory, the trustee shall take receipt of the debtor's assets, books and papers, and shall sign at the end of the inventory list to that effect. The trustee…
- Article 143If the debtor has not submitted the balance sheet, the trustee must prepare it immediately and deposit it with the Bankruptcy Administration. Section Two Management of…
- Article 144Immediately upon issuance of a decision opening bankruptcy declaration proceedings, the debtor shall be divested of the power to dispose of and administer his assets and…
- Article 145If the disposition is one that may be invoked only through entry, registration, or other procedures, it shall not be effective against creditors unless the procedure was…
- Article 146The divestment of the debtor’s powers of administration and disposition shall encompass all assets owned by the debtor on the day the decision opening bankruptcy…
- Article 147The Bankruptcy Judge may, upon the application of the trustee or the debtor, authorize the continued operation of the debtor’s business if the public interest, the…
- Article 148The debtor's assets may not be sold during the preliminary proceedings period. Nevertheless, the bankruptcy judge may, at the trustee's request, authorize the sale of…
- Article 149The Bankruptcy Judge may, upon the trustee’s proposal, order, where necessary, that the first sums collected for the account of the bankruptcy estate be used to…
- Article 150The preferential right established for the Government on account of taxes and fees of all types shall cover only the tax due from the debtor for the two years preceding…
- Article 151If the debtor leases the property in which he conducts trade, the lease shall continue, and the rent for the remaining term until its expiry shall not become due upon…
- Article 152The trustee may, within sixty days from the date of issuance of the decision opening bankruptcy declaration proceedings, decide to terminate the lease of the property in…
- Article 153The lessor of premises to the debtor shall, if the lease is terminated pursuant to the provisions of this Law, have a preferential right for the two years preceding…
- Article 154If the trustee decides to continue the lease, he shall pay the rent in arrears, without prejudice to the lessor's right to request termination of the lease agreement on…
- Article 155If a decision is issued opening bankruptcy declaration proceedings in respect of the employer and the employment contract is for a fixed term, it may not be terminated…
- Article 156If it is decided to continue the debtor's business, the trustee shall regularly pay the sums due to suppliers of goods and providers of services necessary for the…
- Article 157Within the ten days following issuance of a decision opening bankruptcy declaration proceedings, the trustee shall pay, from the cash in the trustee’s possession and…
- Article 158The following dispositions may not be invoked against creditors if made by the debtor in respect of whose debts a decision opening bankruptcy declaration proceedings has…
- Article 159A judgment may be rendered declaring ineffective against creditors the registration of mortgage rights or privileges established over the assets of a debtor in respect…
- Article 160Actions brought on the basis of the two preceding Articles shall be time-barred upon the lapse of one year from the date of publication of the decision opening the…
- Article 161The trustee may request that a disposition made by the debtor before the issuance of the decision opening bankruptcy declaration proceedings, to the detriment of…
- Article 162If a disposition is adjudged ineffective against creditors, the transferee shall be obliged to return to the debtor or the trustee, as the case may be, what he received…
- Article 163If the debtor is obligated to pay a periodic annuity for life or to fulfil undertakings payable in instalments, and this is in return for consideration, the bankruptcy…
- Article 164A creditor whose debt is subject to a resolutory condition shall participate in the proceedings upon providing a guarantor. As for a creditor whose debt is subject to a…
- Article 165The bankruptcy judge may, at the request of the debtor or his dependants and after hearing the trustee's statements, determine a maintenance allowance for the debtor in…
- Article 166After a decision opening bankruptcy declaration proceedings has been issued, no action may be brought against the debtor or continued, except for the following actions:…
- Article 167The agency shall terminate upon issuance of a decision opening proceedings for declaration of the bankruptcy of the agent or the principal. However, it shall not…
- Article 168The issuance of a decision opening bankruptcy declaration proceedings shall cause all monetary debts owed by the debtor to become immediately due, whether they are…
- Article 169The Bankruptcy Court may deduct from a deferred debt for which no interest has been stipulated an amount equivalent to the statutory interest for the period from the…
- Article 170With the permission of the bankruptcy judge, the debtor may engage in a new trade using funds other than those of the bankruptcy estate, provided that this does not…
- Article 171If the debtor pays the value of a commercial instrument after the date of cessation of payment and before the issuance of the decision opening bankruptcy declaration…
- Article 172A state of bankruptcy shall arise only by a judgment declaring bankruptcy. The Bankruptcy Administration shall, within ten days from the date of issuance of the judgment…
- Article 173In addition to the provisions contained in this Chapter, the effects arising from the issuance of the decision opening bankruptcy declaration proceedings pursuant to…
- Article 174Temporarily deprived of exercising political rights, of membership in parliamentary councils or professional councils, of holding a public office or assignment, or of…
- Article 175The bankrupt may not absent himself from his domicile without notifying the trustee in writing of his place of residence.
- Article 176All correspondence relating to the bankrupt's business during bankruptcy declaration proceedings must include a reference to the debtor being subject to bankruptcy…
- Article 177The bankruptcy judge may, on the judge's own initiative or at the request of the Public Prosecution or the trustee, decide to place the bankrupt under surveillance. The…
- Article 178If, before the judgment declaring bankruptcy becomes final, the debtor becomes able to pay all debts due from him, the Court of Appeal may, at the request of the debtor…
- Article 179The trustee shall invite the debtor and the creditors to a meeting to submit their proposals concerning liquidation and distribution, provided that the meeting is held…
- Article 180The trustee shall draw up a plan for liquidating the debtor’s assets and distributing them among the creditors, provided that he completes the preparation of that plan…
- Article 181The liquidation and distribution plan must include the following: 1 - A statement of all the debtor’s assets and their latest valuation. 2 - The method proposed by the…
- Article 182The trustee shall invite the creditors to approve the liquidation plan by a notice containing the date and place of the meeting, provided that it is held no later than…
- Article 183Only creditors whose debts have been admitted, even provisionally, may participate in voting on the liquidation and distribution plan. The liquidation and distribution…
- Article 184Minutes shall be drawn up recording what took place at the meeting to vote on the liquidation and distribution plan, and shall be signed by the trustee, the person who…
- Article 185The trustee shall, within ten days of the creditors’ approval or rejection of the liquidation and distribution plan, notify the Bankruptcy Department thereof, and shall…
- Article 186The Bankruptcy Judge may approve the liquidation and distribution plan even if it proposes selling all or some of the debtor’s assets through a public auction or without…
- Article 187Neither the debtor nor any party related to the debtor may submit an offer to purchase any of the debtor's assets offered for sale except when they are offered at a…
- Article 188The trustee shall submit to the bankruptcy judge a monthly statement of the status of the liquidation, the amount of the sums deposited, and the distributions he has…
- Article 1891 - The costs of selling the bankrupt’s assets subject to a preferential right or mortgage shall be paid in priority to the rights of the creditor holding the…
- Article 190The trustee may not pay the creditor's share of distributions unless the creditor presents the debt instrument endorsed as verified and admitted. The amounts paid shall…
- Article 191If six months elapse without completion of the liquidation or tangible progress therein, the trustee must submit to the bankruptcy judge a report on the status of the…
- Article 192The trustee shall, within ten days of completing the liquidation work, notify the Bankruptcy Department and the creditors thereof and shall attach to the notification a…
- Article 193The trustee shall notify the Bankruptcy Department and the creditors by providing a copy of the minutes of the meeting referred to in the preceding Article within ten…
- Article 194The trustee shall deliver to the debtor any surplus sums upon liquidation after payment of all his debts, and shall return all documents in his custody to the person…
- Article 195Upon the termination of the bankruptcy proceedings, each creditor regains the right to take individual proceedings to recover the remainder of his debt. If the…
- Article 196If the administration of the bankruptcy is suspended for insufficiency of funds before ratification of the judicial composition, the bankruptcy judge may decide to close…
- Article 197The bankrupt and any interested party may request the bankruptcy judge to reverse the decision closing the bankruptcy proceedings if it is established that there are…
- Article 198The Bankruptcy Department shall publish, serve notice of, and register the decision closing the bankruptcy within ten days from the date of its issuance. Second…
- Article 199The bankruptcy judge may, after the final list of creditors has been drawn up as set out in this Law, upon the application of the bankrupt or the trustee, issue a…
- Article 200The Bankruptcy Judge may not issue a decision terminating the bankruptcy proceedings on account of the cessation of the creditors’ interest until the trustee submits a…
Articles 201 – 30099
- Article 201A composition concerning the indebtedness may be concluded after a final judgment declaring the debtor bankrupt has been rendered, in accordance with the provisions set…
- Article 202The application for composition shall be submitted to the Bankruptcy Administration by the debtor or the trustee, setting out its terms and accompanied by an updated…
- Article 203If the application for composition is submitted by the trustee, he must attach thereto a report including the status of the bankruptcy, the procedures taken in respect…
- Article 204The Bankruptcy Department shall, within ten days of the submission of the application for composition, notify the Bankruptcy Committee of the application and its…
- Article 205The trustee shall, within ten days of being notified, invite the creditors to a meeting to discuss the terms of the composition. If the application is submitted by the…
- Article 206The trustee shall notify the Bankruptcy Department of the creditors' approval or rejection of the composition within ten days of the date of the meeting at which…
- Article 207To secure the rights of creditors to whom the composition applies, the Real Estate Registration and Authentication Department, the Commercial Registry Department, the…
- Article 208The trustee shall supervise the implementation of the terms of the composition and submit a periodic report, every month or at any other interval specified by the…
- Article 209Upon full performance of the terms of the composition, the trustee shall submit an application to the Bankruptcy Administration for the issuance of a decision…
- Article 210The trustee shall submit to the Bankruptcy Administration a final account of the bankruptcy proceedings within ten days of the issuance of the decision terminating the…
- Article 211All effects of bankruptcy shall cease upon the issuance of the decision terminating the bankruptcy by composition. Annulment and Rescission of the Composition
- Article 212The composition shall be invalidated if either of the following two cases occurs: 1. If, after its ratification or after issuance of the decision terminating the…
- Article 213Any interested person may request rescission of the composition if the bankrupt fails to perform its terms.
- Article 214An application for annulment or rescission of the composition shall be submitted to the Bankruptcy Administration by a creditor, accompanied by all documents, data, and…
- Article 215If the application and its attachments reveal on their face that it is serious, the Bankruptcy Judge shall issue a decision accepting it within ten days from the date of…
- Article 216The decision accepting the application and referring it to the Bankruptcy Court shall be published, formally notified and registered, and the debtor, creditors, trustee…
- Article 217The decision referred to in the preceding Article shall be deemed cancelled by operation of law, with the effects resulting therefrom, if either of the following two…
- Article 218Subject to the provision of the two preceding articles, if an investigation of the bankrupt for the offence of fraudulent bankruptcy begins after ratification of the…
- Article 219The Bankruptcy Court shall rule on the application within ten days from the date of the first hearing for its consideration. If the Court rules that the composition is…
- Article 220The trustee shall invite new creditors to submit the documents supporting their debts in accordance with the debt verification procedures. New debts shall be verified in…
- Article 221Annulment of the composition results in the discharge of the good-faith guarantor who guarantees performance of the terms of the composition. Rescission of the…
- Article 222After annulment or rescission of the composition, the creditors' debts shall be restored to them in full, in relation to the bankrupt alone. These creditors shall…
- Article 223The provisions stipulated in this Part shall apply to preventive settlement, restructuring, and declaration of bankruptcy proceedings, unless otherwise provided. Chapter…
- Article 224The owner of assets in the debtor’s possession may, after obtaining permission from the Bankruptcy Judge, reclaim those assets if he proves that he will suffer serious…
- Article 225Creditors holding secured debts may, after obtaining permission from the bankruptcy judge, take enforcement proceedings against the assets securing their debts or…
- Article 226The trustee, debtor and Bankruptcy Committee—if the indebtedness is subject to its supervision—must be notified of any application submitted by creditors holding secured…
- Article 227Subject to the provision of the preceding Article, the Bankruptcy Judge shall issue his decision within ten days from the date the application for permission is…
- Article 228The bankruptcy judge may refuse authorization for the sale, whether the indebtedness is subject to preventive settlement, restructuring or declaration of bankruptcy…
- Article 229The trustee or the debtor may offer the creditors holding secured debts alternative security, provided that it is equivalent to the existing security. If they do not…
- Article 230The articles of this subdivision shall apply to the party contracting with the debtor in repurchase agreements, if the contracting party has acquired ownership of an…
- Article 231Without prejudice to the right of priority in recovery of debts pursuant to the law, the proceeds of sale of property securing secured debts shall be paid to the…
- Article 232The trustee or the debtor, as the case may be, may, after obtaining permission from the bankruptcy judge, pay the debt secured by a pledge in order to use the pledged…
- Article 233If several persons are liable for a single debt, and a decision opening proceedings is issued in respect of one of them concerning that debt, that decision shall have no…
- Article 234If a creditor receives part of a debt from one of the persons liable for the same debt, and a decision opening proceedings is then issued in respect of the remaining…
- Article 235If a decision opening proceedings is issued in respect of all persons liable for a single debt simultaneously, the creditor may participate in each proceeding concerning…
- Article 236If an estate devolves upon the debtor, he must notify the trustee or the creditors—as the case may be—and his creditors shall have no right over its assets until the…
- Article 237The debtor may not, after issuance of the decision opening the proceedings, pay the debts it owes. The provision of the preceding paragraph shall not apply to debts…
- Article 238Set-off may not be effected between debts incurred after the decision opening proceedings unless this is pursuant to implementation of a preventive settlement proposal…
- Article 239The balance of the debt due to the creditor after set-off shall be included among the debtor’s debts and shall occupy the rank occupied by the original debt. The balance…
- Article 240A person conventionally subrogated to the creditor may not invoke set-off between the rights transferred to him from the creditor and the debts he owes to the debtor. He…
- Article 241After the issuance of the decision opening proceedings, neither the debtor nor the trustee may undertake any of the following dispositions except with permission from…
- Article 242The issuance of the decisions provided for in this Law, including the decision opening proceedings or the decision ratifying the preventive settlement proposal or the…
- Article 243Goods, securities, equity interests, real estate and any other assets in the debtor’s possession by way of deposit, or for sale on behalf of their owner, or for delivery…
- Article 244The price of goods, securities, interests, or real estate sold by the debtor for their owner's account may be recovered if it has not been paid in cash, by a commercial…
- Article 245In the cases provided for in the preceding two Articles, the reclaiming party shall pay the trustee the entitlements due to the debtor.
- Article 246If the sale contract is rescinded by a judgment or pursuant to a condition in the contract before issuance of a decision opening proceedings for a declaration of…
- Article 247If a decision to commence bankruptcy declaration proceedings in respect of the buyer is issued before payment of the price, and the goods remain with the seller, or the…
- Article 248If a decision opening bankruptcy declaration proceedings concerning the purchaser's indebtedness is issued before payment of the price and after the goods have entered…
- Article 249Commercial papers and other instruments of value delivered to the debtor for collection of their value or for allocation to a specific payment may be recovered if they…
- Article 250Banknotes deposited with the debtor may not be recovered unless the person seeking recovery proves their identity. The identity of the money shall be established if it…
- Article 251Any person may recover from the debtor’s assets such things as he proves he owns. If the debtor or the trustee, as the case may be, refuses to return them, the dispute…
- Article 252Neither spouse may recover from the other spouse's assets the gifts that his or her spouse granted to him or her during the marriage by an inter vivos disposition or a…
- Article 253Either spouse—whatever financial regime is followed in the marriage—may recover from the other's assets his or her movable and immovable property upon proving ownership…
- Article 254The provisions of this Law shall apply generally to preventive settlement, restructuring and declaration of bankruptcy proceedings submitted in respect of companies’…
- Article 255The company’s manager or liquidator may not submit an application to commence proceedings pursuant to the provisions of Law Index 1446 Home Page Bankruptcy Law Law No.…
- Article 256If the debtor is a company and it is decided to open proceedings in respect of its debts, determination of every application seeking liquidation of the company or its…
- Article 257The trustee shall act in place of the company declared bankrupt in every matter in which the law requires obtaining the bankrupt's opinion or his attendance, or the…
- Article 258Except for companies subject to preventive settlement proceedings, if some partners or shareholders owe debts to the company because of non-payment of the outstanding…
- Article 259The securities issued by the company shall not be subject to debt verification procedures, and these securities shall be admitted at their value after deducting what the…
- Article 260An application to commence proceedings submitted in respect of the company’s indebtedness shall be deemed submitted at the same time in respect of the indebtedness of…
- Article 261The bankruptcy judge may deem an application to open proceedings submitted concerning a company’s indebtedness to have been submitted concerning the indebtedness of any…
- Article 262If a judgment declaring the company bankrupt is issued, the Bankruptcy Court may, upon the request of the bankruptcy judge, the trustee, the Bankruptcy Committee, or a…
- Article 263If the debtor in respect of whom an application to open proceedings is submitted under the provisions of this Law is classified Law Index 1448 Home Page as a small or…
- Article 264As an exception to the provision of Article 195 of this Law, if the bankruptcy ends in respect of the debtor referred to in the preceding Article, the debtor may submit…
- Article 265The discharge of the debtor from debts pursuant to the preceding Article may not result in the debtor recovering assets that were subject to liquidation and distribution…
- Article 267Any person with an interest may lodge a grievance before the bankruptcy judge when the debtor or trustee commits any of the following acts: 1 - If he fails to notify him…
- Article 268Any interested party may lodge a grievance before the bankruptcy judge if the Bankruptcy Administration fails to perform any of its obligations specified in this Law.
- Article 269The grievance shall be submitted within ten days from the date on which the complainant became aware of the occurrence complained of. If that occurrence is subject to…
- Article 270The grievance shall be submitted to the Bankruptcy Department, which shall notify the trustee, the Bankruptcy Committee, the supervisor, and the debtor, if the grievance…
- Article 271A grievance shall not stay the proceedings unless the Bankruptcy Judge decides otherwise. The Bankruptcy Judge may request that the grievant provide security in rem, a…
- Article 272Any interested person may appeal the Bankruptcy Judge's decision before the Court of Appeal within one month from the date of notification, publication, or service of…
- Article 273The appeal shall be submitted to the Bankruptcy Administration, which shall register it with the Court of Appeal, and the Court shall set a hearing to consider it within…
- Article 274The Bankruptcy Administration shall refer the appeal file and the memoranda it has received to the Court of Appeal within ten days from the date of expiry of the period…
- Article 275The penalties prescribed in this Part shall not prejudice any more severe penalty prescribed in another law.
- Article 276For the purposes of this Part, a manager shall mean the chief executive officer of a joint-stock company, the managers of a general partnership, a limited partnership, a…
- Article 277Any debtor against whom a final judgment declaring his bankruptcy has been issued, and who is proven to have committed any of the following acts after ceasing payment,…
- Article 278The chairman and members of the company's board of directors, its managers, auditors, and persons conducting its liquidation shall be punished by imprisonment for a term…
- Article 279Any debtor whose bankruptcy has been declared by a final judgment and who is proven to have committed any of the following acts shall be deemed a bankrupt through…
- Article 280If a final judgment declaring a company bankrupt is issued, the members of its board of directors, its managers and its liquidators shall be punished by imprisonment for…
- Article 281If criminal proceedings for fraudulent or negligent bankruptcy are instituted, or a judgment thereon is rendered pursuant to the preceding Articles, preventive…
- Article 282Any trustee who embezzles property belonging to the debtor while administering it shall be punished by imprisonment for a term not exceeding five years and a fine not…
- Article 283Anyone who steals, embezzles or conceals assets belonging to the debtor while knowing of the issuance of a decision opening proceedings to declare the debtor bankrupt…
- Article 284Every creditor of a debtor in respect of whom a decision opening proceedings has been issued who commits any of the following acts shall be punished by imprisonment for…
- Article 285Anyone who fraudulently submits fictitious debts in his own name or in the name of another during preventive settlement, restructuring, or declaration of bankruptcy…
- Article 286Every debtor who commits any of the following acts shall be punished by imprisonment for a term not exceeding three years and a fine not exceeding thirty thousand…
- Article 287Any creditor who commits any of the following acts shall be punished by imprisonment for a term not exceeding two years and a fine not exceeding twenty thousand, or by…
- Article 288The following shall be punished by imprisonment for a term not exceeding one year and a fine not exceeding twenty thousand dinars, or either of these two penalties: 1 -…
- Article 289Any person who refuses to comply with a decision issued by the bankruptcy judge pursuant to this Law to submit data, information or documents, or to give testimony,…
- Article 290If the bankruptcy judge decides to open preventive settlement or restructuring proceedings in accordance with this Law Index 1455 Home Page Bankruptcy Law Law No. 71 of…
- Article 291The effect of the stay of criminal proceedings provided for in the preceding Article shall continue until the bankruptcy judge decides on the preventive settlement and…
- Article 292The Bankruptcy Department shall publish all criminal judgments issued in respect of the offences stipulated in this Law by the methods prescribed for publishing…
- Article 293Upon conviction for the offenses stipulated in Articles 287, 288, and 289 of this Law, the court may order that the convicted person be prohibited from managing any…
- Article 294Unless the provisions of this Chapter provide otherwise, the rights of which a person declared bankrupt was deprived pursuant to the provisions stipulated in this Law or…
- Article 295A judgment rehabilitating the bankrupt must be rendered, even if the period stipulated in the preceding Article has not expired, if he has paid all his debts, including…
- Article 296A bankrupt who has been convicted of any fraudulent bankruptcy offence may not be rehabilitated until three years have elapsed from the execution of the sentence, its…
- Article 297A judgment rehabilitating a fraudulent bankrupt may be rendered even if the period provided for in the preceding Article has not elapsed, in the following two cases: 1 .…
- Article 298A bankrupt convicted of an offense of negligent bankruptcy may not be rehabilitated except after execution of the imposed penalty, expiry of its term if its execution…
- Article 299The bankrupt shall be rehabilitated after his death upon the application of one of the heirs, and the periods prescribed in Articles Nos. 294 to 297 of this Law shall be…
- Article 300If any creditor refuses to receive payment of his debt, is absent, or his place of residence cannot be ascertained, the debt may be deposited in the court treasury, and…
Articles 301 – 4007
- Article 301The application for rehabilitation, accompanied by supporting documents, shall be submitted to the Bankruptcy Department. The Bankruptcy Department shall send the…
- Article 302The Public Prosecution shall submit to the Bankruptcy Administration, within ten days from the date it receives a copy of the application for rehabilitation, a report…
- Article 303Every creditor whose entitlement has not been satisfied to submit an objection to the application for rehabilitation within ten days of publication of a summary of the…
- Article 304The Bankruptcy Administration shall, within ten days of receiving the Public Prosecution’s response, refer the application file and objections the Bankruptcy Court,…
- Article 305The court shall decide the application for rehabilitation by a final judgment. If the court rules to reject the application, it may not be submitted again until one year…
- Article 306If, before determination of the application for rehabilitation, investigations are conducted with the bankrupt concerning a bankruptcy offence, or criminal proceedings…
- Article 307If a judgment convicting the bankrupt of any bankruptcy offence is issued after the judgment rehabilitating him, the latter judgment shall be deemed never to have…