Article 231 of Bankruptcy Law

Without 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 trustee. The trustee shall pay from the sale proceeds what is due to the creditor whose debt is secured. If the sale proceeds exceed the secured debt, the trustee shall retain the surplus for the account of payment of the debtor’s remaining debts if the trustee manages the debtor’s property and business; otherwise, he shall deliver that surplus to the debtor. If the sale proceeds are insufficient to pay the entire secured debt, the creditor shall participate in the proceedings for the amount of the difference as an ordinary creditor. The sums specified in the preceding paragraph shall be paid to the creditor whose debt is secured within a maximum period of ten Index of the Law 1441 Home Page Bankruptcy Law Law No. 71 of 2020 Promulgating the Bankruptcy Law days from the date on which the trustee collects the sale proceeds, without awaiting the procedures for distributing debts among creditors pursuant to this Law. If the property securing the debt is sold during preventive settlement proceedings, its sale proceeds shall be paid directly to the creditor up to the amount of the secured debt. If the sale proceeds exceed the secured debt, the surplus shall be paid to the debtor. If the sale proceeds are insufficient to pay the secured debt, the creditor shall participate in the proceedings for the amount of the difference as an ordinary creditor.