Article 20 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 20 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الإفلاس إلى المحكمة، ولكل ذي مصلحة الاعتراض على الطلب أمام المحكمة خلال (أربعة عشر) يوماً من تاريخ تقديمه.
3- على الدائن تبليغ المدين أو الأمين -بحسب الإجراء- قبل تقديم طلب إنهاء إجراء الإفلاس إلى المحكمة، ولكل ذي مصلحة الاعتراض على الطلب أمام المحكمة خلال (أربعة عشر) يوماً من تاريخ تقديمه.
4- على كل ذي مصلحة تبليغ المدين أو الأمين -بحسب الإجراء- قبل تقديم طلب إنهاء إجراء الإفلاس إلى المحكمة، ولأي منهما الاعتراض على الطلب أمام المحكمة خلال (أربعة عشر) يوماً من تاريخ تقديمه.
5- يجب أن يشتمل التبليغ المنصوص عليه في الفقرات (2) و(3) و(4) من هذه المادة على الآتي:
أ- التاريخ المزمع فيه تقديم طلب إنهاء الإجراء إلى المحكمة.
ب- مسوغات تقديم الطلب.
6- على المدين أو الأمين -بحسب الإجراء- عند اكتمال تنفيذ الخطة تقديم طلب إلى المحكمة للحكم بإنهاء إجراء الإفلاس، مرافقة له المعلومات والوثائق المحددة لذلك.
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 20 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law explains how ending a bankruptcy procedure is requested, who must be notified, and who may object.
1- Documents: the request to end is submitted accompanied by the information and documents specified for this purpose.
2- Notice before submission, and objection: what is required differs according to who submits the request:
- The debtor or the trustee (according to the procedure): must notify the creditors before submitting the request to the court, and any interested party may object before the court within 14 days of its submission.
- The creditor: must notify the debtor or the trustee (according to the procedure) before submission, and any interested party may object within 14 days of the date the request is submitted.
- Any interested party: must notify the debtor or the trustee (according to the procedure) before submission, and either the debtor or the trustee may object within 14 days of its submission.
Note that the objection period in the three cases is counted from the date the request is submitted, not from the date of notice.
3- Content of the notice: in all three cases the notice must include:
- The date on which it is intended to submit the request to end the procedure to the court.
- The grounds for submitting the request.
4- Completion of the plan: on completion of the plan's implementation, the debtor or the trustee, according to the procedure, must submit a request to the court for a judgment ending the bankruptcy procedure, accompanied by the specified information and documents.
Article 21 is connected to it, requiring a debtor who is a natural person and has not been discharged from a remaining debt to notify his creditors if he starts an activity within 24 months of the ending of any of the liquidation procedures. The 14-day period is short, so anyone who wants to object would do well to act promptly and consult a lawyer specializing in bankruptcy cases.
Practical example
A maintenance company in Riyadh completed implementing the plan in the bankruptcy procedure opened for it. Before submitting the request to end the procedure, it notified its creditors of the date on which it intended to submit the request and its grounds. If a creditor sees reason to object, he may do so before the court within 14 days of the date the request is submitted.
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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Active contributorFrequently asked questions about Article 20 of the Saudi Implementing Regulations of the Bankruptcy Law
What is the period for objecting to a request to end a bankruptcy procedure?
14 days from the date the request is submitted to the court.
What must the notice of a request to end the procedure include?
The date on which it is intended to submit the request to the court, and the grounds for submitting it.
When does the debtor request ending the procedure after implementing the plan?
On completion of the plan's implementation, the debtor or the trustee, according to the procedure, submits a request to the court for a judgment ending the procedure, with the specified information and documents.
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 19
The expenses of a bankruptcy procedure are paid from the bankruptcy estate's assets, unless transgression or negligence is proved.
تدفع مصروفات إجراء الإفلاس من أصول التفليسة، ما لم يثبت تعدٍّ أو تفريط.
- 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.