Article 4 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 4 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثاني: أحكام مشتركة بين إجراءات الإفلاس: طلب افتتاح إجراء الإفلاس
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 القضائي- مرافقاً له المعلومات والوثائق المحددة لذلك.
3- إذا تقدم غير المدين بطلب افتتاح إجراء الإفلاس، فللمحكمة أن تأمر المدين بتقديم المعلومات والوثائق المشار إليها في الفقرة (1) من هذه المادة.
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 4 explained in plain English
This article of the Implementing Regulations of the Bankruptcy Law regulates how to submit a request to open a bankruptcy procedure, and deals with three cases:
- The request before the court: the request to open a bankruptcy procedure is submitted to the court, and must be accompanied by the "information and documents" specified for this purpose. Under Article 1 of the Regulations, this information and these documents are specified by the Bankruptcy Committee in coordination with the Ministry of Justice, so this article does not list them.
- Judicial deposit: the trustee submits the decision of the small debtor, or the decision of the competent authority, for judicial deposit, accompanied by the information and documents specified for this purpose. This article does not explain when judicial deposit applies or its effects.
- If the person submitting the request is not the debtor: the court may order the debtor to submit the information and documents referred to in paragraph 1. This is a discretionary power, as the text says "the court may order."
Paragraph 3 allows the court to obtain the information and documents from the debtor itself when the debtor is not the one who submitted the request.
Relation to neighboring articles: Article 5 allows the court, after registration of a request to open any of the liquidation procedures, to order the appointment of a trustee listed on the trustees' list to replace the debtor in managing its activity until its judgment on the request is issued, or to seize the debtor's assets in its possession or with others. Article 3 also regulates what the debtor's managers submit before voting on voluntary liquidation.
Anyone who wishes to submit a request to open a bankruptcy procedure would do well to consult a lawyer specializing in bankruptcy cases.
Practical example
A contracting establishment in Dammam fell behind on paying suppliers' dues, and one of the suppliers submitted to the court a request to open a bankruptcy procedure against it. Because the person submitting the request is not the debtor, the court may order the establishment to submit the information and documents specified for the opening request.
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 4 of the Saudi Implementing Regulations of the Bankruptcy Law
Where is a request to open a bankruptcy procedure submitted?
It is submitted to the court, accompanied by the information and documents specified for this purpose.
What documents are required with a bankruptcy request?
This article does not list them, but refers to the information and documents specified by the Bankruptcy Committee in coordination with the Ministry of Justice.
What if someone other than the debtor submits the bankruptcy request?
In that case, the court may order the debtor to submit the information and documents specified for the opening request.
More articles on Opening and Ending a Bankruptcy Procedure
- 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 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 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.