Article 62 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 62 من اللائحة التنفيذية لنظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: افتتاح الإجراء
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 المعلومات التي يقدمها إليه المدين الصغير أو الجهة المختصة- من توافر شروط افتتاح الإجراء الواردة في المادة (الثامنة والأربعين بعد المائة) من النظام، وذلك قبل الإيداع القضائي.
3- يقيد طلب الإيداع القضائي لدى المحكمة، وتصدر المحكمة قرارها في شأن قبول الإيداع خلال (ثلاثة) أيام من تاريخ القيد.
4- إذا كان طلب افتتاح الإجراء مقدماً من الدائن، فتحدد المحكمة موعداً للنظر فيه, على أن يكون خلال (أربعين) يوماً من تاريخ قيده، وتبلغ الدائن والمدين الصغير بموعد الجلسة خلال (خمسة) أيام من تاريخ القيد، وتقضي في الطلب وفقاً لحكم المادة (الثامنة والأربعين بعد المائة) من النظام.
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 62 explained in plain English
This article of the Regulations sets out the steps to open the financial reorganization procedure for small debtors, and distinguishes between two cases.
First: if the procedure starts from the small debtor or the competent authority
- The small debtor or the competent authority issues the decision to open the procedure in the form specified for that purpose.
- Before the judicial filing, the trustee checks that the conditions for opening set out in Article 148 of the Bankruptcy Law are met, relying on the information the small debtor or the competent authority gives him.
- The request for judicial filing is registered with the court, and the court issues its decision on accepting the filing within 3 days of the date of registration.
Second: if a creditor submits the request to open
- The court sets a date to consider the request within 40 days of the date it is registered.
- It notifies the creditor and the small debtor of the hearing date within 5 days of the date of registration.
- It rules on the request in accordance with Article 148 of the Bankruptcy Law.
After the opening comes Article 63, which requires the trustee to file the opening judgment or the decision accepting the judicial filing with the Bankruptcy Register within 5 days. This article does not state the content of the conditions in Article 148, which should be consulted in the Law. Anyone who needs to assess his situation is best advised to consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
The owner of a small online store in Riyadh faces financial difficulties and wants to reorganize his debts. The decision to open financial reorganization for small debtors is issued on the specified form, and he gives his information to the trustee to check that the conditions of Article 148 of the Law are met. After the request for judicial filing is registered, the court issues its decision on accepting it within 3 days.
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 62 of the Saudi Implementing Regulations of the Bankruptcy Law
How long does the court take to decide on accepting a judicial filing for financial reorganization for small debtors?
The court issues its decision on accepting the filing within 3 days of the date the request is registered.
Can a creditor ask to open financial reorganization for a small debtor?
Yes. The article refers to a request submitted by a creditor, for which the court sets a date to consider within 40 days of registration and notifies both parties of the hearing date within 5 days of registration.
What is the trustee's role before the judicial filing?
He checks that the conditions for opening the procedure in Article 148 of the Law are met, based on the information given by the small debtor or the competent authority.
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 61
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.
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 ا
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.