Article 146 of the Saudi Bankruptcy Law
المادة 146 من نظام الإفلاس · الفصل السابع: إجراء إعادة التنظيم المالي لصغار المدينين: الإجراء
The article makes the trustee agreed with the one who carries out the judicial filing to open financial reorganization for small debtors, and requires the court to keep a register of its information and documents.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يقوم الأمين -المتفق معه من قبل المدين الصغير أو الجهة المختصة- بالإيداع القضائي.
2- تحتفظ المحكمة بسجل يتضمن تفاصيل المعلومات والوثائق المقدمة لافتتاح إجراء إعادة التنظيم المالي لصغار المدينين.
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 146 explained in plain English
This article deals with who carries out the judicial filing and how the court keeps the procedure's records.
1- The trustee carries out the judicial filing: if the decision to open the financial reorganization procedure for small debtors is issued by the small debtor or the competent authority, the trustee agreed with by either of them is the one who carries out the judicial filing. The debtor does not do it itself.
2- The court's register: the court keeps a register containing the details of the information and documents submitted to open the procedure.
The importance of the judicial filing appears from Article 145, which provides that an opening decision issued by the small debtor or the competent authority does not take effect and has no effect until after the judicial filing. It also provides that the debtor or the competent authority submits to the trustee the decision and all information and documents for the purpose of filing, and that the Implementing Regulations specify the provisions on this.
One of the effects of the filing is what Article 147 provides: that registering the opening of the procedure, or its opening, results in suspension of claims for 180 days, extendable by no more than 120 days.
This article does not give the details of how the filing is made or the content of the register, so reference is made to the Implementing Regulations as Article 145 refers. For a particular situation, it is advisable to consult a lawyer specialized in bankruptcy and commercial matters.
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 146 of the Saudi Bankruptcy Law
Who carries out the judicial filing in financial reorganization for small debtors?
The trustee agreed with by the small debtor or the competent authority.
Does the court keep the documents for opening the procedure?
Yes. The court keeps a register containing the details of the information and documents submitted to open the procedure.
More articles on Small Debtor Bankruptcy Procedures
- Article 102
Opening the liquidation leads to the start of liquidating the bankruptcy estate assets, carried out by the trustee, except what the court approves an individual debtor keeping for the living of the debtor and dependents.
1- يترتب على افتتاح إجراء التصفية البدء في تصفية أصول التفليسة. 2- يتولى الأمين تصفية أصول التفليسة عدا ما وافقت المحكمة على احتفاظ المدين ذي الصفة الطبيعية به
- Article 127
The article states that the aim of the protective settlement for small debtors is to let a small debtor agree with its creditors on settling its debts through simple, low-cost procedures while it keeps managing its business.
يهدف إجراء التسوية الوقائية لصغار المدينين إلى تمكين المدين الصغير من التوصل إلى اتفاق مع دائنيه لتسوية ديونه خلال فترة معقولة عبر إجراءات يسيرة بتكلفة منخفضة و
- Article 128
The article lets a small debtor choose the ordinary protective settlement, and bars it from opening a small debtors' settlement if it was subject to it or to a protective settlement in the preceding 12 months.
1- للمدين الصغير طلب افتتاح إجراء التسوية الوقائية بدلاً من افتتاح إجراء التسوية الوقائية لصغار المدينين. 2- لا يجوز للمدين افتتاح إجراء التسوية الوقائية لصغار
- Article 129
The article allows a small debtor that is distressed, bankrupt or expecting distress to issue a decision opening the small debtors' protective settlement and file it with its proposal in the bankruptcy register.
1- للمدين الصغير إذا كان يتوقع مواجهة اضطرابات مالية يخشى معها تعثره أو كان متعثراً أو مفلساً، أن يصدر قراراً بافتتاح إجراء التسوية الوقائية لصغار المدينين وفق
- Article 130
The article requires a small debtor to call the owners to vote on the proposal if it affects their rights, at least 21 days before the voting date and before the creditors vote.
إذا تضمن المقترح ما يؤثر في حقوق الملاك، فعلى المدين الصغير دعوتهم إلى التصويت على المقترح قبل حلول موعد التصويت بـ(واحد وعشرين) يوماً على الأقل وفقاً لما تنص ع
- Article 131
The article lets a small debtor ask the court to suspend claims for no more than 90 days, and explains when that period ends.
1- للمدين الصغير أن يطلب من المحكمة -خلال المدة من افتتاح إجراء التسوية الوقائية لصغار المدينين إلى موافقة الدائنين على المقترح- تعليق المطالبات لمدة لا تزيد عل
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.