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Bankruptcy Procedures

Commission Members

​The Bankruptcy Co​mmission has worked since its establishment to provide instructive materials in the form of guides, templates and tools that aim to facilitate and clarify the regulations of the bankruptcy procedures.

The beneficiaries can understand the stages of every bankruptcy procedure by visiting the page of the main seven bankruptcy procedures.

Each procedure's page contains a journey that illustrates the procedure's steps and stages, as well as the stakeholders' roles and responsibilities. The page contains a guide to the commencement of bankruptcy procedure and a card that illustrates the information and documents required while the commencement of the procedure.

You can use the interactive guide to identify the most appropriate bankruptcy procedure​

The bankruptcy procedures aim to allow the bankrupt, distressed, or potentially distressed debtor to benefit from the bankruptcy procedures so that he or she can restructure his or her finances, and resume his/her business activities, while protecting the creditors' rights and maximizing the Bankruptcy Assets.

The Bankruptcy Law contains seven main procedures:​​

1.Protective Settlement ​Procedure 

(Bankruptcy Law, chapter 3, Implementing Regulations, chapter 3)

A procedure that aims to facilitate reaching an agreement between the debtor and his/her creditors to settle the debts and allow the debtor to continue running his/her business.  ​​

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2. Financial Restructuring Procedure 

 (Bankruptcy Law, chapter 4, Implementing Regulations, chapter 4)

A procedure that aims to facilitate reaching an agreement between the debtor and his/her creditors to financially restructure his/her business activity under the supervision of the financial restructuring officeholder. ​​​



3. Liquidation Procedure

 (Bankruptcy Law, chapter 5, Implementing Regulations, chapter 5)

A procedure that aims to account for creditors' claims, the sale of the Bankruptcy Assets and the distribution of the sale proceeds to the creditors under the management of the liquidation officeholder​.

Liquidation Procedure Commencement Card -  Debtor
 Liquidation Procedure Commencement Card - Creditor ​Liquidation Procedure Journey

 

4. Administrative Liquidation Procedure ​​

(Bankruptcy Law, chapter 9, Implementing Regulations, chapter 9)

A procedure under the management of the Bankruptcy Commission, aiming to sell the bankruptcy assets  which sale proceeds are not expected to cover the expenses of the liquidation procedure or the small  debtors' liquidation procedure.​​

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5. Small Debtors' Protective Settlement Procedure 

(Bankruptcy Law, chapter 6, Implementing Regulations, chapter 6)

 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.

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


6. Small Debtors' Financial Restructuring Procedure

 (Bankruptcy Law, chapter 7, Implementing Regulations, chapter 7)

A procedure that aims to facilitate reaching an agreement between the small debtor and his creditors to financially restructure his business within a reasonable period and through simple measures with low cost  and high efficiency under the officeholder's supervision.

Small Debtors' Financial Restructuring Procedure Commencement Card - Officeholder
 ​​Small Debtors' Financial Restructuring Procedure Commencement Card - Creditor ​​Small Debtors' Liquidation Procedure Journey

 

7. Small Debtors' Liquidation Procedure ​

(Bankruptcy Law, chapter 8, Implementing Regulations, chapter 8)

​A procedure that aims to sell the Bankruptcy Assets and the 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.​​

Small Debtors' Liquidation Procedure Commencement Card - Officeholder 
 ​​​Small Debtors' Liquidation Procedure Commencement Card - Creditor ​ Small Debtors' Liquidation Procedure ​ Journey

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