Article 67 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 67 من اللائحة التنفيذية لنظام الإفلاس · الفصل الثامن: إجراء التصفية لصغار المدينين طلب افتتاح الإجراء
This article regulates opening liquidation for small debtors: the decision in the specified form, the trustee's check of the conditions in Article 163 of the Law, 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 التصفية لصغار المدينين، وفقاً للنموذج المحدد لذلك.
2 - على الأمين التحقق -بناءً على المعلومات التي يقدمها إليه المدين الصغير أو الجهة المختصة- من توافر شروط افتتاح الإجراء الواردة في المادة (الثالثة والستين 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 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 (الثالثة والستين 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 67 explained in plain English
This article of the Regulations sets out the steps to open the liquidation procedure for small debtors, and distinguishes between two cases depending on who started the procedure.
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 liquidation in the form specified for that purpose.
- Before the judicial filing, the trustee checks that the conditions for opening set out in Article 163 of the Bankruptcy Law are met, based on the information the small debtor or the competent authority gives him.
- The request for judicial filing is registered with the court, and it issues its decision on accepting it within 3 days of registration.
If a creditor submits the request to open:
- The court sets a date to consider it 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 163 of the Law.
This article does not state the content of the conditions in Article 163, which should be consulted in the Bankruptcy Law. Because liquidation usually ends with selling the assets and distributing their proceeds, anyone facing this procedure, whether as debtor or creditor, is advised to consult a lawyer who specializes in bankruptcy and commercial cases.
Practical example
A supplier in Riyadh did not receive its dues from a struggling small establishment, so it submitted a request to open liquidation for small debtors. After the request is registered, the court sets a date to consider it within 40 days, notifies the supplier and the establishment of the hearing date within 5 days of registration, and then rules in accordance with Article 163 of the Law.
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 67 of the Saudi Implementing Regulations of the Bankruptcy Law
Can a creditor ask to liquidate a small debtor?
Yes. The article addresses the case of a request submitted by a creditor, for which the court sets a date to consider within 40 days of its registration.
How long does the court take to decide on accepting a judicial filing for liquidation for small debtors?
The court issues its decision within 3 days of registration.
Which article sets the conditions for opening liquidation for small debtors?
The article refers to Article 163 of the Bankruptcy Law, and the trustee checks that they are met before the judicial filing.
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.