Article 19 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 19 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
The expenses of a bankruptcy procedure are paid from the bankruptcy estate's assets, unless transgression or negligence is proved.
Official text (Arabic)
This article has not been amended since the law was issued.
تدفع مصروفات إجراء الإفلاس من أصول التفليسة، ما لم يثبت تعدٍّ أو تفريط.
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 19 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law answers a practical question: where are the expenses of a bankruptcy procedure paid from?
The rule: the expenses of a bankruptcy procedure are paid from the bankruptcy estate's assets.
The exception: this rule does not apply if transgression or negligence is proved.
What does the article not mention?
- It does not list the types of expenses meant.
- It does not specify who bears the expenses when transgression or negligence is proved.
- It does not state the body that decides whether transgression or negligence is proved, or how it is proved.
Why does this matter to creditors? Because what is paid from the bankruptcy estate's assets for expenses is paid from the very assets subject to the procedure, so creditors have an interest in following these expenses.
Relation to neighboring articles: Article 18 requires stating the type of procedure opened in any document issued in the debtor's name, and Article 20 regulates the request to end the bankruptcy procedure, giving notice of it and objecting to it before the court within 14 days of its submission.
Anyone who believes particular expenses arose from transgression or negligence would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
In a liquidation procedure for a company in Khobar, the trustee needed to rent a warehouse to store the company's goods until they were sold. If the rent is counted among the procedure's expenses, it is paid from the bankruptcy estate's assets, unless it is proved that it arose from transgression or negligence.
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 19 of the Saudi Implementing Regulations of the Bankruptcy Law
Who pays the expenses of bankruptcy procedures?
The expenses of a bankruptcy procedure are paid from the bankruptcy estate's assets.
When are expenses not paid from the bankruptcy estate's assets?
If transgression or negligence is proved, and the article does not specify who bears them in that case.
More articles on Opening and Ending a Bankruptcy Procedure
- Article 4
A request to open a bankruptcy procedure goes to the court with the specified documents, the trustee submits the small debtor's or competent authority's decision for judicial deposit, and the court may order the debtor to provide documents.
1- يُقدم طلب افتتاح إجراء الإفلاس إلى المحكمة مرافقاً له المعلومات والوثائق المحددة لذلك. 2- يقدم الأمين قرار المدين الصغير أو الجهة المختصة -من أجل الإيداع الق
- Article 5
After registration of a request to open any liquidation procedure, the court may appoint a trustee to replace the debtor in managing its activity, or seize the debtor's assets.
للمحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- أن تأمر, بعد قيد طلب افتتاح أي من إجراءات التصفية، بأي مما يأتي: أ - تعيين أمين مدرج في قائمة الأمناء يحل محل
- Article 18
This article of the Regulations requires that any document issued in the debtor's name state the type of procedure opened: the debtor does so in preventive settlement and financial restructuring, and the trustee or the Bankruptcy Committee in liquidation.
1- على المدين فور افتتاح أي من إجراءات التسوية الوقائية أو إعادة التنظيم المالي تضمين أي مستند يصدر باسمه نوع الإجراء المفتتح له، وعلى الأمين في أي من إجراءي إع
- Article 20
This article of the Regulations governs the request to end a bankruptcy procedure: attaching documents, prior notice and its content, objection before the court within 14 days, and the request to end on completion of the plan.
1 - يقدم طلب إنهاء إجراء الإفلاس مرافقة له المعلومات والوثائق المحددة لذلك. 2- على المدين أو الأمين -بحسب الإجراء- تبليغ الدائنين قبل تقديم طلب إنهاء إجراء الإف
- Article 21
A natural-person debtor who has not been discharged from a remaining debt must notify creditors if he starts a profit-making activity within 24 months of ending liquidation, and apply to distribute any money that comes to him.
1- على المدين ذي الصفة الطبيعية -الذي لم يبرأ من دين متبق في ذمته- تبليغ دائنيه عند بدء ممارسته نشاطاً تجارياً أو مهنياً أو يهدف إلى تحقيق الربح خلال (أربعة وعش
- Article 56
This article of the Regulations allows the trustee, at the debtor's request, to ask the court to postpone ending the liquidation for an acceptable reason, such as bringing a claim against a third party.
للأمين -بناءً على طلب المدين- أن يتقدم إلى المحكمة بطلب تأجيل إنهاء إجراء التصفية لسبب مقبول بما في ذلك إقامة دعوى ضد الغير للحصول على تعويض أو استرداد أصل، على
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.