Back to Home

bankruptcy logo bankruptcy logo

bc›Home›Bankruptcy Law›Bankruptcy Procedures›Small Debtors' Liquidation Procedure

Small Debtors' Liquidation Procedure

Commission Members

​A procedure that aims to sell the Bankruptcy Assets and distribute the sale proceeds to the creditors within a reasonable period and through low cost and highly efficient simple procedures under the officeholder's supervision.

General Considerations:

  • The small debtor issues the decision of commencing the procedure after agreeing with one of the listed officeholders, the decision is valid after the Judicial Depository.
  • The creditor may apply to the court for the commencement of the procedure if the total debt claimed exceeds (fifty thousand) Saudi Riyals.
  • The total debt shall not exceed (2 million) Saudi Riyals.
  • There is no chance for the debtor to resume his/her business activities and generate better returns.
  • The proceeds expected from selling the assets shall cover the procedure's expenses.
  • The officeholder manages the debtor's business activities and the procedure.
  • The small debtor may apply to the court for the commencement of the Liquidation Procedure instead of the Small Debtors Liquidation Procedure. ​​

​​