Article 61 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 61 من اللائحة التنفيذية لنظام الإفلاس · الفصل السادس: إجراء التسوية الوقائية لصغار المدينين: إنهاء العقود
This article requires the small debtor to file with the Bankruptcy Register, within 5 days, what proves that the result of the vote was filed with the court, and to announce that the plan has taken effect within 5 days.
Official text (Arabic)
This article has not been amended since the law was issued.
على المدين الصغير خلال (خمسة) أيام من انتهاء تصويت الدائنين على المقترح أن يودع لدى سجل الإفلاس ما يثبت إيداع نتيجة التصويت لدى المحكمة، وعليه أن يعلن عن نفاذ الخطة خلال (خمسة) أيام من تاريخ نفاذها.
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 61 explained in plain English
This article of the Regulations deals with two steps taken by the small debtor in the preventive settlement procedure for small debtors, after the creditors vote on the proposal it submitted.
- Filing in the Bankruptcy Register: Within 5 days of the end of the creditors' vote on the proposal, the small debtor must file with the Bankruptcy Register what proves that it filed the result of the vote with the court. What is required in the Register is proof of the filing with the court.
- Announcing that the plan has taken effect: Within 5 days of the date the plan takes effect, the small debtor must announce that it has taken effect.
The aim is that creditors and others dealing with the debtor are aware of the outcome of the procedure. This article follows Article 60, which requires the small debtor to file the court's decision to stay claims or extend it in the Bankruptcy Register immediately, and to announce it within 5 days of its issue; the two articles together make filing and announcing the responsibility of the small debtor itself in this procedure.
The article does not specify the means of announcement or its form, and does not state when the plan is considered to have taken effect; these matters are referred to the Bankruptcy Law and the rules issued under it.
Because the application of these dates varies according to the circumstances of each procedure, anyone facing a particular situation is advised to consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
The owner of a small establishment in Jeddah submitted a preventive settlement proposal for small debtors, and the creditors' vote ended on Sunday. He must file with the Bankruptcy Register what proves that he filed the result of the vote with the court within 5 days of that day, and then, if the plan takes effect, announce that it has taken effect within 5 days of the date it takes effect.
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 61 of the Saudi Implementing Regulations of the Bankruptcy Law
What is the period to file the result of the creditors' vote in the Bankruptcy Register?
Within 5 days of the end of the creditors' vote on the proposal, the small debtor files with the Bankruptcy Register what proves that the result of the vote was filed with the court.
Who is responsible for announcing that the small debtors' preventive settlement plan has taken effect?
The small debtor itself, who must announce that the plan has taken effect within 5 days of the date it takes effect.
Does the article specify how the plan taking effect is announced?
No. The article specifies only the period and does not state the means or form of announcement.
More articles on Small Debtor Bankruptcy Procedures
- Article 11
The trustee sells the bankruptcy estate's assets after the judgment or decision opening the liquidation procedure, or the liquidation procedure for small debtors, becomes final.
يتولى الأمين بيع أصول التفليسة بعد اكتساب حكم أو قرار افتتاح إجراء التصفية أو إجراء التصفية لصغار المدينين الصفة النهائية.
- Article 57
This article regulates a small debtor's request to terminate its contracts in preventive settlement for small debtors: its timing, the trustee's report and notice to the contracting party.
1 - على المدين الصغير الذي يرغب في إنهاء أي من العقود التي يكون طرفاً فيها تقديم طلب الإنهاء إلى المحكمة بعد إيداع قرار افتتاح إجراء التسوية الوقائية لصغار المد
- Article 58
This article requires the small debtor to notify the creditors identified in the proposal of the voting date, with a copy of the proposal or evidence that it is available electronically.
يبلغ المدين الصغير الدائنين المحددين في المقترح بموعد التصويت عليه، ويرفق بالتبليغ نسخة من المقترح أو ما يفيد بإتاحة الاطلاع عليه بأي من الوسائل الإلكترونية الت
- Article 59
This article requires the small debtor to attach the information and documents specified for that purpose to the request for a stay of claims.
على المدين الصغير أن يرفق بطلب تعليق المطالبات المعلومات والوثائق المحددة لذلك.
- Article 60
This article requires the small debtor to file the decision approving a stay of claims or extending it with the Bankruptcy Register as soon as it is issued, and to announce it within 5 days.
1 - على المدين الصغير فور إصدار المحكمة قراراً بالموافقة على طلب تعليق المطالبات أو تمديده, إيداع القرار لدى سجل الإفلاس. 2 - يعلن المدين الصغير قرار المحكمة با
- Article 62
This article explains how financial reorganization for small debtors opens: the decision in the specified form, the trustee's check of the conditions, and the court's time limits on filing or a creditor's request.
1 - يصدر المدين الصغير أو الجهة المختصة قرار افتتاح إجراء إعادة التنظيم المالي لصغار المدينين وفقاً للنموذج المحدد لذلك. 2 - على الأمين التحقق -بناء على المعلوم
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.