Article 12 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 12 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
Enforcement against the assets securing the debtor's debt during the period of suspension of claims is carried out in accordance with the provisions of the relevant laws.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون التنفيذ على الأصول الضامنة لدين المدين خلال مدة تعليق المطالبات، وفقاً لأحكام الأنظمة ذات العلاقة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 12 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law deals with the assets securing the debtor's debt, meaning assets that secure a debt owed by the debtor, during the period of suspension of claims.
What does the article say? Enforcement against these assets during the period of suspension of claims is carried out in accordance with the provisions of "the relevant laws."
What does the article not mention?
- It does not name these laws.
- It does not state the conditions or procedures of enforcement or the body from which it is requested.
- It does not set the period of suspension of claims or when it starts.
The article is a referral rule: it makes the relevant laws the reference for enforcement against these assets during the suspension period, without detailing its provisions. This article alone therefore cannot be relied on to know whether enforcement is possible in a particular case or how it is done.
Relation to neighboring articles:
- Article 11 makes selling the bankruptcy estate's assets one of the trustee's tasks after the judgment or decision opening liquidation or small-debtor liquidation becomes final.
- Article 13 requires the creditor to submit his claim to the trustee or the Bankruptcy Committee within the period specified for submitting claims and in the specified form.
Because identifying the laws applicable to a particular security requires consideration of each case, a creditor whose debt is secured by one of the debtor's assets would do well to consult a lawyer specializing in bankruptcy and enforcement cases.
Practical example
A bank in Riyadh gave a company financing secured by a mortgage on a warehouse it owns, then a bankruptcy procedure was opened for the company and claims were suspended. If the bank wants to enforce against the warehouse during the suspension period, this is subject to the provisions of the relevant laws as this article provides, not to a detailed rule in the article itself.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 12 of the Saudi Implementing Regulations of the Bankruptcy Law
Can a mortgaged asset be enforced against during the suspension of claims?
The article provides that enforcement against the assets securing the debtor's debt during the period of suspension of claims is carried out in accordance with the provisions of the relevant laws, without detailing its conditions.
Which relevant laws does this article mean?
The article does not name them; they are consulted according to the type of asset and security.
More articles on Creditors' Claims and Rights
- Article 10
This article of the Regulations gives the creditors' committee, creditor and debtor the right to inspect the procedure's information and documents held by the trustee or Bankruptcy Committee, unless declared confidential, with the right to object before the court.
1- للجنة الدائنين والدائن والمدين حق الاطلاع على ما لدى الأمين أو لجنة الإفلاس من معلومات ووثائق متعلقة بإجراء الإفلاس المفتتح للمدين ما لم يقرر الأمين أو لجنة
- Article 13
The creditor submits his claim to the trustee or the Bankruptcy Committee within the period specified for submitting claims and in the specified form.
يقدم الدائن مطالبته إلى الأمين أو لجنة الإفلاس خلال المدة المحددة لتقديم المطالبات وفق النموذج المحدد لذلك.
- Article 14
The trustee or the Bankruptcy Committee reviews and verifies creditors' claims, then prepares a list of them with specified details and submits it to the court for approval within 14 days of the end of the claims submission period.
1- يراجع الأمين أو لجنة الإفلاس -بحسب الإجراء- مطالبات الدائنين، مع اتخاذ ما يلزم للتحقق من صحتها وقيمة كل منها والمعلومات المقدمة لإثباتها. 2- يعد الأمين أو لج
- Article 30
During the stay of claims, the court considers a creditor's request when it finds its own property with the debtor, and orders its return where the property is unchanged, no part of the price was received, and the request is made within 5 days.
تنظر المحكمة -خلال مدة تعليق المطالبات- في طلب الدائن الذي وجد عين ماله عند المدين، وتقضي برد عين ماله في الحالات الآتية: أ - إذا لم يتغير ماله بزيادة أو نقصان
- Article 33
This article requires the debtor to notify creditors of the preventive settlement opening judgment within 7 days, and gives an unlisted creditor 14 days to ask for its claim to be included.
1- على المدين تبليغ الدائنين المحددين في المقترح بحكم المحكمة بافتتاح إجراء التسوية الوقائية خلال (سبعة) أيام من تاريخ صدوره، ودعوتهم إلى التصويت على المقترح، ع
- Article 43
This article allows someone who owns assets in the debtor's possession or held by it to ask the court to recover them, with the specified information and documents.
يقدم من يملك أصولاً تقع في حيازة المدين أو محجوزة لديه، طلباً إلى المحكمة لاستردادها، مرافقة له المعلومات والوثائق المحددة لذلك.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.