Article 84 of the Saudi Implementing Regulations of the Bankruptcy Law
المادة 84 من اللائحة التنفيذية لنظام الإفلاس · الفصل الرابع عشر: أحكام خاصة بالمدين المتوفى: وفاة المدين بعد افتتاح أي من إجراءات التسوية الوقائية
Sets what happens to money that comes to a deceased debtor's estate: it is paid to the company formed, or to the creditors according to their shares and priorities after liquidation.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا آل مال إلى تركة المدين المتوفى بعد تأسيس شركة بناء على أحكام الفصل
(السادس عشر) من النظام، فيدفع المال لتلك الشركة, ما لم يتفق الورثة والدائنون على غير ذلك.
2 - إذا آل مال إلى تركة المدين المتوفى بعد تصفية التركة -بناءً على أي من إجراءات التصفية- أو بعد تصفية الشركة التي تأسست بناء على أحكام الفصل (السادس عشر) من النظام، فيدفع ذلك المال إلى الدائنين، كلٌّ بحسب حصته وأولويته. وللدائن المطالبة بحقه في ذلك المال أمام المحكمة المختصة.
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 84 explained in plain English
This article of the Regulations answers a practical question: what happens if money appears or comes to the deceased debtor's estate at a later stage? It distinguishes two cases:
Case one: after the company is formed
If the money comes to the estate after a company has been formed under the provisions of Chapter 16 of the Bankruptcy Law, the money is paid to that company, unless the heirs and creditors agree otherwise.
Case two: after liquidation
If the money comes to the estate after the estate has been liquidated under any of the liquidation procedures, or after liquidation of the company formed under Chapter 16 of the Law, the money is paid to the creditors, each according to his share and priority. A creditor may claim his right to that money before the competent court.
This rule is connected to Article 83, which allows the heirs, after agreeing with the creditors to form a company and transfer the estate's assets to it, to apply to open the bankruptcy procedure appropriate to that company; Article 84 completes the picture by stating what happens to money that appears afterward.
The article does not identify the competent court or how shares and priorities are calculated, so the Bankruptcy Law and the relevant laws should be consulted. Anyone who is an heir or creditor in such a case should preferably consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
After the liquidation of the company formed by the heirs of a deceased merchant in Riyadh under Chapter 16 of the Law, a judgment was issued in favor of the estate for an amount the deceased had been claiming from one of his customers. This amount is paid to the creditors, each according to his share and priority, and any creditor may claim his right to it before the competent court.
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 84 of the Saudi Implementing Regulations of the Bankruptcy Law
To whom is money that comes to the debtor's estate after the company is formed paid?
It is paid to the company formed under Chapter 16 of the Law, unless the heirs and creditors agree otherwise.
What if money appears for the estate after it has been liquidated?
It is paid to the creditors, each according to his share and priority, and a creditor may claim his right to it before the competent court.
Can the heirs and creditors agree to direct the money to someone other than the company?
Yes, in the first case. The text says "unless the heirs and creditors agree otherwise."
More articles on Bankruptcy of a Deceased Debtor
- Article 81
If the debtor dies during preventive settlement or preventive settlement for small debtors, the court may, at the request of his heirs or creditors, appoint a temporary trustee from the trustees' list to manage his affairs.
إذا توفي المدين أثناء سريان إجراء التسوية الوقائية أو التسوية الوقائية لصغار المدينين؛ فللمحكمة -بناء على طلب أي من ورثته أو دائنيه- أن تعين بشكل مؤقت أميناً مد
- Article 82
At the request of an heir or creditor, the court sets a date for a meeting of the deceased debtor's heirs and creditors within 30 days, extendable by another 30 days; the applicant announces it within 5 days.
1- تحدد المحكمة -بموجب حكم المادة (التاسعة عشرة بعد المائتين) أو حكم المادة (العشرين بعد المائتين) أو حكم المادة (الحادية والعشرين بعد المائتين) من النظام- موعد
- Article 83
If a bankrupt or distressed debtor dies before a bankruptcy application, the heirs may, after agreeing with the creditors to form a company and transfer the estate's assets to it, apply to open the appropriate procedure for it.
إذا توفي مدين مفلس أو متعثر قبل تقديم طلب افتتاح إجراء الإفلاس، فلورثته -بعد الاتفاق مع الدائنين على تأسيس شركة ونقل أصول التركة إليها- التقدم إلى المحكمة بطلب
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.