search panel backdrop

FAQ

Commission Members

Number of Results: /
    1-General Questions

    What is the Bankruptcy Law?

    The Bankruptcy Law aims to enable a debtor to restructure his or her finances and resume commercial activities while protecting the rights of creditors, equalizing between parties of equal rights, maximizing the value of assets, organizing sale, fairly distributing shares, and preserving confidence in the credit market and stock exchange.

    What are the bankruptcy procedures identified in the Bankruptcy Law?

    The Bankruptcy Law contains seven main procedures: 1-Protective settlement. 2-Financial restructuring. 3-Liquidation. 4-Protective settlement for small debtors. 5-Financial restructuring for small debtors. 6-Liquidation for small debtors. 7-Administrative liquidation.

    What are the objectives of bankruptcy procedures?

    The bankruptcy procedures aim to achieve the following: 1-Allow the bankrupt, distressed, or potentially distressed debtor to benefit from the bankruptcy procedures so that he or she can reorganize his or her finances, resume financial activities and contribute to economy and economic growth. 2-Maintain the rights of creditors fairly and ensuring impartial treatment of parties involved. 3-Maximizing the value of bankruptcy assets, organizing sale, and ensuring fair distribution to creditors during liquidation. 4-Reducing the costs and time period of the procedures while increasing efficiency, particularly during the financial restructuring for small debtors or selling bankruptcy assets, and fairly distributing shares among creditors within a specified period of time. 5-Liquidating the administration of small debtors whose value of assets is insufficient to cover the costs of the liquidation procedure or liquidation for small debtors.

    Who does the Bankruptcy Law apply to?

    The provisions of the Bankruptcy Law apply to: 1-A natural person involved in commercial, professional, or for-profit activities in Saudi Arabia. 2-Commercial or professional companies, organizational entities and other for-profit companies and entities that are registered in Saudi Arabia. 3-A natural or legal Non-Saudi investor with assets in Saudi Arabia conducting business or for-profit activities via a registered establishment in Saudi Arabia. The Law applies only to the investor’s assets in Saudi Arabia.

    What are the Commission’s competences?

    1-Issuing and managing the bankruptcy register. 2-Licensing bankruptcy officeholders and experts in accordance with the Regulations. 3-Preparing a bankruptcy officeholders and experts list in accordance with the Regulations. 4-Issuing the rules governing the work of bankruptcy officeholders and experts. 5-Conducting inspections and verifications in respect of any Bankruptcy Procedures implemented in accordance with the provisions hereof. 6-Submitting recommendations to the Minister regarding updating the list of Regulated entities, in coordination with the competent authorities. 7-Setting out the small debtors standards in coordination with the General Authority for Small and Medium Enterprises. 8-Determining the minimum debt amount of the debt that gives creditors the right to request the initiation of liquidation procedure. 9-Managing administrative liquidation procedures. 10-Issuing, maintaining and managing the register provided for in Article (204) (2) hereof. 11-Issuing the forms and documents provided for in the Implementing Regulations. 12-Organizing and sponsoring initiatives to increase awareness about the Law. 13-Making the necessary proposals to enhance the effective implementation and development of the provisions hereof, including conducting studies and research. 14-Conducting activities and participating in the events relevant to its competences. 15-Conducting periodic reviews of the provisions of the Law and its Regulations, as well as the relevant rules and instructions, and propose any amendments to the Minister in coordination with the competent authorities. 16-Provisions of consultations, services and training with or without a consideration. 17-Publishing the rules of archiving and managing the Bankruptcy Register mentioned in article (204) Paragraph (2). Issuing the rules of licensing bankruptcy officeholders and experts. 18-Issuing the regulations of officeholders’ duties in collaboration with the Ministry of Justice. 19-Issuing the regulations of professional conduct for bankruptcy officeholders and experts. 20-Issuing the regulations of inspection and investigation. 21-Issuing the regulations of nominating bankruptcy officeholders and experts in collaboration with the Ministry of Justice. 22-Any other competences specified in the Implementing Regulations or the decision of forming the Commission.

    Who is the bankruptcy officeholder?

    A bankruptcy officeholder is an officeholder appointed by the court or an applicant, to perform the tasks and duties entrusted to him in accordance with the type of procedure. This includes the financial restructuring officeholder and the liquidation officeholder.

    When will the court look into protective settlements, financial restructuring or liquidation requests? What is the outcome?

    The court will schedule a hearing to look into protective settlement requests within forty days from date of the application. The court will determine one of the following: 1-Proceed with the request and schedule a hearing. 2-Deny the request. 3-Reschedule the hearing.

    Which court is in charge of bankruptcy requests?

    According to the Bankruptcy Law, the Commercial Court is in charge of bankruptcy requests.

    When will the procedure for suspending claims occur?

    This procedure is linked to bankruptcy procedures mentioned in the Bankruptcy Law if it included cases of suspending claims with rules and durations.

    Has the Bankruptcy Law been applied yet?

    Yes, the Bankruptcy Law has been applied as of Monday 16/12/1439 A.H. (conquering with 27/8/2018 A.D.)

    How do I file for a bankruptcy procedure?

    Filing for any bankruptcy procedure is available online via the portal for Commercial Judiciary in the Commercial Court. First, click on Judiciary Services, sign in, click on Bankruptcy Applications, and then complete the submission procedure. The service is accessible by visiting the commercial justice system portal on the Ministry of Justice website.

    What is the minimum amount of debt that permits a debtor to file for any liquidation procedure?

    The minimum amount of debt that allows a debtor to file for liquidation procedure or liquidation for small debtors procedure is fifty thousand (50,000) Saudi Riyals.

    How can I announce a judgment, decision, or procedure mentioned in the Law and Implementing Regulations of Bankruptcy?

    Announcing any judgment, decision or procedure In accordance with the Law or Regulations of Bankruptcy is available via the following online form.

    Who is considered a small debtor?

    In accordance with the provisions of the Bankruptcy Law Implementing Regulations, a small debtor is one whose debt does not exceed two million Saudi Riyals (2,000,000) when the bankruptcy procedure takes place.

    How does the officeholder annotate the protective settlement proposal as stated in Article (32) in the Law Implementing Regulations?

    To fulfill the annotating requirement, the listed officeholder is required only to annotate the first page of the proposal affirming its compliance with the requirements mentioned in Article (16) of the Implementing Regulations. The officeholder signs and dates the proposal and retains a signed copy.

    How can the officeholder, or debtor report judgments, decisions, or procedures in the Law and Implementing Regulations of the Bankruptcy Law?

    In accordance with the Law and Regulations of Bankruptcy, the officeholder or debtor can report a judgment, decision or procedures via the following online form.

    How much does the officeholder license costs?

    It costs 2000 SAR and it's valid for 3 years.

    How can you deposit into the bankruptcy register?

    1. Log in on the Bankruptcy Commission's website (username and password).
    2. Access to Bankruptcy Register services and choose a new register/ new depositor.
    3. Fill out your information and attach the required documents. 4. Click on send request, so that the application can be studied and approved electronically.
    5. The deposit summary will be displayed on the Commission's website and available to the public.​​​

    What are the document​s required to deposit in the bankruptcy register?

    1. Debtor: The required data and documents vary depending on whether you are an individual or a company
    a. Natural person (individual): a copy of national I.D or Iqama.
    b. Corporate person (company, enterprise): commercial register and copy of national I.D or the iqama of the representative.
    2. Depositor:
    Officeholder: A copy of the court's decision to appoint the officeholder in the relevant procedure.
    Attorney: A copy of the power of attorney.
    3. Deposit documents: a copy of the document to be deposited in (PDF) format.​

    Who can deposit in the bankruptcy register?

    The debtor (individual, establishments, company) and the officeholder.

    How to obtain a statement from the bankruptcy register?

    You can obtain a statement through the Bankruptcy Commission's website (E-services page).

    What are the document​s required to obtain a statement from the bankruptcy register?

    A copy of the attorney's national I.D and a copy of the power of attorney.

    How long is the license valid for?

    Three years, which can be renewable.

    What are the professions required to obtain an officeholder license?

    1-Accounting.
    2-Law.

    What programs do you need to pass inn order to fullfill the professional qualification requirements?

    1- Licensed accounting practitioners need to pass legal training for bankruptcy practitioners.
    2- Licensed lawyer need to pass legal training for bankruptcy practitioners and the fundamentals of financial accounting and reporting program.

    How can I apply for an officeholder license?

    You can apply for an officeholder license through the Bankruptcy Commission's website (E-services page).

    What are the requirements that accountants have to meet in order to get an officeholder license?

    On the E-services page, there is a page dedicated to officeholders you can refer to for all information regarding officeholders.

    What are the requirements that lawyers have to fullfil in order to get an officeholder license?

    On the E-services page, there is a page dedicated to officeholders you can refer to for all information regarding officeholders.

    Is it enough to pass the exams of the training programs to get an officeholder license?

    Article (3) of the Code of Licensing the Officeholders and Experts stipulates the terms of licensing, you can view them through the following link: https://bankruptcy.gov.sa/ar/BankruptcyLaw/StatutoryDocuments/Pages/default.aspx
    On the E-services page, there is a page dedicated to officeholders you can refer to for all information regarding officeholders.

    What are the requirements for renewing license?

    The previous temporary officeholder license shall expire in accordance with the decision of the Council of Ministers No. (622), dated 24/12/1439 A.H, now the license shall be granted to -those who want to obtain a license- in accordance with the licensing rules adopted by the Commission, which includes the passing of the professional qualification under paragraph (1/3/k) of the rules, you can view the Code of Licensing the Officeholders and Experts on the website on the Commission's decisions page. You can also see the schedule of training courses on the courses page.

    What are the rules of licensing an officeholder?

    On the E-services page, there is a page dedicated to officeholders you can refer to for all information regarding officeholders.

    When will the Commission respond to your license application?

    The Commission takes no more than 60 days from the submission date to review the application.

    Is it a requirement to register in every training course to obtain an officeholder license?

    1. Accountants must attend and pass the legal training for bankruptcy practitioners program. 2. Lawyers must attend and pass the legal training for bankruptcy practitioners program and the fundamentals of financial accounting and reporting program.

    What is expert licensing service?

    This service allows you to apply for an expert license in your field.

    Who can apply for an expert license?

    Every Saudi person who has a license in his/her field.

    How long is the expert license valid for?

    Three years, which can be renewable.

    What professional qualification requirements you need to fullfil in order to obtain an expert license?

    Legal training for bankruptcy practitioners program.

    Can you ask for a refund for the license?

    In any case, the licensee is not entitled to a refund for the license.

    How can I apply for an expert license?

    Through the E-services page on the Bankruptcy Commission website.

    How much work experience is required to obtain an expert license?

    Five years including a year after obtaining the license.

    What is the expert's role in bankruptcy procedures?

    Expert's tasks vary in every bankruptcy procedure, most importantly experts help officeholders perform their duties, study the claims, and prepare reports regarding the procedures such as writing a report that supports obtaining financing for the debtor.

    Is it enough to pass the exams of the training programs to get an expert license?

    The requirements of professional qualifications need to be fulfilled as determined by the Bankruptcy Commission.

    What are the requirements for renewing expert's license?

    Achieve 20 points of continuous learning.

    How much does the expert license cost?

    It costs 1000 SAR and it's valid for 3 years.

    When will the Commission respond to your expert license application?

    The Commission takes no more than 60 days from the submission date to review the application.

    How to use the announcement service?

    1. Enter the announcement services (new announcement).
    2. Log in on the Bankruptcy Commission website (username and password).
    3. Fill out your information and attach the required documents.
    4. Click on send request, so that the application can be studied and approved electronically.
    5. You will receive an email accepting the application and it will be published on the Commission's website.​

    What are the document​s required to apply for an annoucement?

    1. Debtor: The required data and documents vary depending on whether you are an individual or a company.
    a. Natural person (individual): a copy of national I.D or Iqama.
    b. Corporate person (company, enterprise): Commercial register.
    2. Who filed for an Announcement:
    a. Officeholder: A copy of the court's decision to appoint the officeholder in the relevant procedure, and a copy of the national I.D.
    b. Attorney: A copy of the power of attorney.
    3. Announcement documents: a copy of the document to be announced in a (PDF) format.

    How long does it take to announce bankruptcy?

    The announcement will be issued within 3 business days once the application is completed.

    How much does the training programs cost?

    It varies depending on the program and you can see the price on the training programs page.

    When will the registration for the courses open?

    The registration will be announced on the courses page one month before it starts.

    When are the exams?

    The exams start at the end of every course, or you can view them on the courses page.

    When can I get the results of the exam?

    The results will be sent to the trainee after 2 weeks from the exam.

    What is the passing grade in the exam?

    60 is the passing grade, for more information you can visit the courses page.
    2-Protective Settlement

    Who is eligible to apply for a protective settlement procedure?

    The debtor is eligible to apply to court for a protective settlement procedure.

    When can the debtor apply for a protective settlement procedure?

    Without prejudice to related regulations, the debtor can apply to a court for a protective settlement under any of the following cases: 1-If the debtor is likely to face financial instability that might lead to financial distress. 2-If the debtor is financially distressed. 3-If the debtor is bankrupt. ​

    When will a court look into protective settlement requests?

    The court will schedule a hearing to look into protective settlement requests within forty days from receiving the request. The court will determine one of the following: 1-Proceed with the request and schedule a hearing. 2-Deny the request. 3-Reschedule the hearing.

    How would the officeholder annotate a proposal in a Protective Settlement claim as stated in Article (32) in the Implementing Regulations?

    To fulfill the annotating requirement, the listed officeholder is required only to annotate the first page of the proposal affirming its compliance with the requirements mentioned in Article (16) of the Implementing Regulations. The officeholder is to sign and date the proposal and retains a signed copy.
    3-Financial Restructuring

    Who is eligible to apply for financial restructuring?

    The debtor, the creditor, or the competent authority is eligible to apply to the court for financial restructuring.

    When can the debtor apply for financial restructuring procedure?

    Without prejudice to related regulations, the debtor can apply to court for financial restructuring procedure in one of the following cases: 1-If the debtor is likely to face financial instability that might lead to financial distress. 2-If the deter is financially distressed. 3-If the debtor is bankrupt.

    Can anyone other than the debtor apply for financial restructuring procedure?

    Yes. If a non-debtor applies for a financial restructuring procedure, the court will notify the debtor within five days from the date of application.

    When will the court look into financial restructuring requests?

    The court will schedule a hearing to look into financial restructuring requests within forty days from the date of application. The court will determine one of the following: 1-Proceed with the request and schedule a hearing. 2-Deny the request. 3-Reschedule the hearing.
    4-Liquidation Procedure ​

    Who is eligible to apply for a liquidation procedure?

    Without prejudice to related regulations ,the debtor, the creditor, or the competent authority is eligible to apply to court for liquidation of a bankrupt or financially distressed debtor.

    When will the court look into liquidation requests?

    The court will schedule a hearing to look into a liquidation request within forty days from the date of application. The Court will determine one of the following: To proceed with the request and schedule a hearing. To deny the request. To reschedule the hearing.

    What is the minimum amount of debt that permits a debtor to apply for any liquidation procedure?

    The minimum amount of debt that allows a debtor to apply for liquidation procedure or liquidation for small debtors procedure is fifty thousand (50,000) Saudi Riyals.
    5-Protective Settlement for Small Debtors

    What is the benefit of protective settlement for small debtors?

    Protective settlement for small debtors allows small debtors to reach an agreement with their creditors in order to pay off their debt within a reasonable period of time with a minimal, effective, and low-cost procedure while maintaining their commercial activities.

    Who is eligible to apply for protective settlement for small debtors?

    A small debtor is eligible to apply to court for protective settlement for small debtors.

    Can a small debtor apply for protective settlement rather protective settlement for small debtors?

    Yes.

    Who is considered a small debtor?

    In accordance with the Bankruptcy Law and Implementing Regulations, a small debtor is one whose debt does not exceed two million Saudi Riyals (2,000,000) when bankruptcy procedures take place.
    6-Financial Restructuring for Small Debtors

    What is the benefit of financial restructuring for small debtors?

    Financial restructuring for small debtors allows small debtors to reach agreements with their creditors to restructure their commercial activities within a reasonable period of time through a minimal, effective and low-cost procedure under the supervision of a bankruptcy officeholder.

    Who is eligible to apply for financial restructuring for small debtors ?

    The small debtor, the creditor, or the competent authority is eligible to apply to court for financial restructuring for small debtors, if the small debtor is financially distressed or bankrupt and cannot proceed with his/her business, provided that his/her assets are sufficient to cover the costs of the procedure.

    Can a small debtor apply for financial restructuring rather than financial restructuring for small debtors?

    Yes.

    Who is considered a small debtor?

    In accordance with the Bankruptcy Law and Implementing Regulations, a small debtor is one whose debt does not exceed two million Saudi Riyals (2,000,000) when bankruptcy procedures take place.
    7-Liquidation Procedure for Small Debtors

    What is the benefit of liquidation for small debtors procedure?

    The liquidation for small debtors procedure allows small debtors to sell their bankruptcy assets and distribute the returns among creditors within a reasonable period of time through a minimal, effective, and low-cost procedure under the supervision of a bankruptcy officeholder.

    Who is eligible to apply for liquidation of small debtors procedure?

    The debtor, creditor, or competent authority is eligible to apply to court for a liquidation of small debtors procedure.

    Can the small debtor, creditor or competent authority apply for liquidation procedure rather than liquidation for small debtors procedure?

    Yes.

    What is the minimum amount of debt that deems a debtor eligible to apply for a liquidation for small debtors procedure?

    The minimum amount of debt that allows a debtor to file for liquidation procedure or liquidation for small debtors procedure is fifty thousand (50,000) Saudi Riyals.

    Who is considered a small debtor?

    In accordance with the Bankruptcy Law and Implementing Regulations, a small debtor is one whose debt does not exceed two million Saudi Riyals (2,000,000) when bankruptcy procedures take place.
    8-Administrative Liquidation

    What is the aim of the administrative liquidation procedure?

    ​The aim of the administrative liquidation procedure is to sell the bankruptcy assets that are insufficient to cover the costs of liquidation or liquidation for small debtors procedure.

    Who is eligible to file for the administrative liquidation procedure?

    The debtor, or the competent authority is eligible to file for the administrative liquidation procedure if the debtor is financially distressed or bankrupt, provided that his/her assets are insufficient to cover the costs of the liquidation or the liquidation procedure.

    Who is in charge of managing the administrative liquidation procedure?

    When issuing a judgment on the commencement administrative liquidation procedure. the court appoints the Bankruptcy Commission to administer the procedure.

    How to file a claim?

    The claim should be submitted electronically when an administrative liquidation procedure is announced.

    What is the time frame to file a claim?

    No more than 60 days from the date of the announcement or the notification.

    When can you end the procedure?

    Within (twelve) months from the procedure's commencement date. When necessary the Bankruptcy Commission can extend it for an additional 90 days.