Small Debtors' Protective Settlement Procedure

A procedure that aims to facilitate reaching an agreement between the debtor and his/her creditors to settle the debts within a reasonable period and through low cost and highly efficient simple procedures while maintaining the debtor's ability to manage his/her business.

General Considerations:

The small debtor can issue a procedure commencement decision and deposits it at the Bankruptcy Register. The decision shall be effective from the deposit date. The debtor may not apply for the commencement of the procedure to the competent court.
The total debts shall not exceed (2 million) Saudi riyals.
There is a chance for the debtor to resume his/her business activities and generate better returns.
The debtor may maintain the management of his/her business as well as managing the procedure.
A small debtor may apply for the commencement of a Protective Settlement Procedure instead of the Small Debtors' Protective Settlement Procedure.

Small Debtors' Protective Settlement Procedure Commencement Card - Debtor
Small Debtors' Protective Settlement Procedure Journey

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Small Debtors' Protective Settlement Procedure

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Fees' disbursement

When disbursing officeholder's fees in financial restructuring, and small debtor's financial restructuring procedures, the following should be considered

50% of fees is due upon the completion of proposal voting, and it shall cover the phase from procedure initiation to proposal vote

25% of fees is due on court ratification of the proposal

25% of fees is due on completion and submission of the sixth periodical report of plan implementation progress reports

When disbursing officeholder's fees in liquidation, and small debtor's liquidation procedures, the following should be considered

75% of fees shall be paid in the form of disbursements

25% of fees is due on the procedure termination by the court, after the full completion of procedure related duties and tasks, including related lawsuits, selling assets, and distribution of proceeds

Court permission is mandatory for the officeholder to disburse his fees