Article 81 of the Saudi Implementing Regulations of the Bankruptcy Law

This article of the Regulations opens the provisions on the deceased debtor, and deals with the case of the debtor's death while a preventive settlement or preventive settlement for small debtors procedure is in progress.

Its provisions are as follows:

• Who requests? Any of the debtor's heirs or any of his creditors.
• What is the court's power? It may appoint, on a temporary basis, a trustee to manage the deceased debtor's affairs. The appointment is optional for the court, not obligatory.
• Condition for the trustee: He must be listed on the trustees' list.
• Length of the appointment: Until a company is established or the procedure ends, according to the provisions of Chapter Sixteen of the Bankruptcy Law.
• Proposing the name: Any of the creditors and heirs may propose the trustee's name to the court.

The aim is that the debtor's affairs do not stop suddenly on his death and that someone manages them until the fate of the procedure is determined. The article does not state the provisions of Chapter Sixteen of the Law, which should be consulted for the details of establishing a company or ending the procedure.

It is followed by Article 82, which regulates the court setting a date for a meeting of the deceased debtor's heirs and creditors at the request of any of them. Because this case combines bankruptcy and estate matters, heirs and creditors are best advised to consult a lawyer who specializes in bankruptcy and commercial cases.