Article 66 of the Saudi Bankruptcy Law
المادة 66 من نظام الإفلاس · الفصل الرابع: إجراء إعادة التنظيم المالي: جرد أصول التفليسة للمدين
An individual debtor is entitled to keep from the estate assets enough for a decent living for itself and its dependents; the court decides this on the trustee's proposal, and it is not included in the proposal.
Official text (Arabic)
This article has not been amended since the law was issued.
يحتفظ المدين ذو الصفة الطبيعية من أصول التفليسة بما يوفر له ولمن يعولهم ما يكفي لمعيشة بالمعروف، وتحدد المحكمة مقدار كفايته بناء على اقتراح الأمين، ويلتزم المدين بمساعدة الأمين على تقويم الأصول لتقدير ما يحتفظ به منها. ولا تدرج الأصول المحتفظ بها لهذا الغرض ضمن المقترح.
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 66 explained in plain English
This article protects the livelihood of the debtor if it is a natural person (an individual) during the financial reorganization procedure, as it may keep from the estate assets what provides it and its dependents with enough for a decent living.
The article rests on three provisions:
- Determination by the court: The court determines the amount that is sufficient on the trustee's proposal; the debtor does not estimate it itself.
- The debtor's cooperation: The debtor must help the trustee in valuing the assets so that what it keeps of them can be determined.
- Exclusion from the proposal: The assets kept for this purpose are not included in the proposal.
The article does not give particular figures or categories for what the debtor keeps but leaves the assessment of sufficiency to the court. Its text is also limited to a debtor who is a natural person.
The article is linked to the inventory list that the trustee prepares of the estate assets under Article 65, which includes the details of the assets, the security over them and what the debtor holds of them. A person in this position who wants to know what they may keep should consult a lawyer specializing in bankruptcy and commercial cases.
Practical example
An individual trader in Medina supports his wife and four children, and a financial reorganization procedure was opened for him. The trader helps the trustee value his assets, then the trustee proposes to the court what is enough for the family's decent living, the court determines the amount, and these assets are not included in the proposal.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 66 of Bankruptcy Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Commercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 66 of the Saudi Bankruptcy Law
Can the debtor keep some of its money for its living in financial reorganization?
Yes. If it is a natural person it may keep from the estate assets enough for a decent living for itself and its dependents.
Who determines what the debtor keeps for its living?
The court determines it on the trustee's proposal, and the debtor must help the trustee in valuing the assets.
Is this money included in the proposal presented to creditors?
No. The assets kept for this purpose are not included in the proposal.
More articles on Financial Reorganization
- Article 41
After a protective settlement ends, the court, on its own initiative or at an interested party's request, opens the appropriate bankruptcy procedure if three conditions are met together.
تقضي المحكمة -من تلقاء نفسها أو بناء على طلب ذي مصلحة- بافتتاح إجراء الإفلاس المناسب إذا تحققت الشروط الآتية: أ- أن يكون المدين متعثراً أو مفلساً. ب- استيفاء شر
- Article 42
The article states who may request the opening of financial reorganization and its three cases, and bars the request if the debtor underwent this procedure in the previous 12 months.
1- دون الإخلال بأحكام الأنظمة ذات العلاقة، للمدين أو الدائن أو الجهة المختصة التقدم إلى المحكمة بطلب افتتاح إجراء إعادة التنظيم المالي للمدين في أي من الحالات ا
- Article 43
A request to open the financial reorganization procedure is filed with the court after submission, accompanied by the relevant information and documents as the Implementing Regulations specify.
يقيد طلب افتتاح إجراء إعادة التنظيم المالي لدى المحكمة بعد تقديمه مرافقاً له المعلومات والوثائق ذات العلاقة، وفقاً لما تحدده اللائحة.
- Article 44
If someone other than the debtor submits a financial reorganization request, the court notifies the debtor within 5 days, and the debtor may object at the hearing in three cases.
إذا تقدم غير المدين بطلب افتتاح إجراء إعادة التنظيم المالي، فعلى المحكمة تبليغ المدين به خلال مدة لا تزيد على (خمسة) أيام من تاريخ تقديمه، وللمدين الاعتراض على
- Article 45
The debtor, owner, manager, officer, board member and auditor are exempted from the Companies Law provisions on a company's losses reaching a specified percentage, as the Implementing Regulations specify.
يعفى المدين أو المالك أو المدير أو المسؤول أو عضو مجلس الإدارة أو مراجع الحسابات من تطبيق أحكام نظام الشركات فيما يخص بلوغ خسائر الشركة نسبة محددة في ذلك النظام
- Article 46Amended by M/89
Filing a financial reorganization request or opening the procedure stays claims for 180 days, extendable by up to 180 days, with cases for an early end.
1- يترتب على قيد طلب افتتاح إجراء إعادة التنظيم المالي أو افتتاحه، تعليق المطالبات لمدة (مائة وثمانين) يوماً، وللمحكمة من تلقاء نفسها، أو بناءً على طلب الأمين أ
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.