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The causes of a bankruptcy petition against a debtor are in section 7 which comprises of three causes.
The causes of a bankruptcy petition against a debtor
The causes of a bankruptcy petition against a debtor are in section 7 which comprises of three causes as follows:
The requirements of a bankruptcy petition against a debtor
The requirements of a bankruptcy petition against a debtor are in sections 9 and 10. Such requirements can be divided in accordance with the two types of creditors namely: 1.Unsecured creditor and 2. Secured creditor.
The requirements of the release of a debtor from bankruptcy
The requirements of the request for payment of debt in a bankruptcy case
Upon the court’s absolute receivership order against the debtor, a creditor may request for payment of debt only in accordance with the procedures provided in section 27 of the Bankruptcy Act. In this regard, the creditor, whether a plaintiff creditor or not, must submit an application therefor to the receiver within two months as from the date of the publication of the absolute receivership order. But, if the creditor is outside the Kingdom, the receiver may grant an extension of time for a period not exceeding two months in accordance with section 91. The debtor may request for the extension of time in accordance with section 23 of the Civil Procedure Code.
Moreover, according to section 91/1, if the creditor does not request for payment of debt within the period prescribed in section 91, paragraph 1 as stated above, the creditor shall file a petition to the court requesting for the payment of debt together with a force majeure supporting such failure. If it is seen by the court that there it is the case of force majeure with a reasonable ground for the request for payment of debt of the creditor, the court shall make an order granting the creditor to file a petition for the payment of debt to the receiver within the period prescribed by the court.
The creditor who has filed a petition for the payment of debt in accordance with the previous paragraph is entitled to receive payment from the debtor’s estate, but only properties remain after the distribution of properties prior to the petition for payment of debt. Noted that this has no effect on any action carried out by the court, the receiver, or the meeting of creditors.
The petition for the payment of debt of a foreign creditor
In accordance with section 178, a foreign creditor domiciled outside the Kingdom may apply for repayment of debt in a bankruptcy action only when the following conditions are satisfied:
The word “foreign creditor” means a foreigner, whether a natural person or a juristic person, who applies for repayment of debt, shall comply with the requirements under section 178 irrespective to where the cause of action has arisen.
Role of MVP
We can advise on laws in relation to bankruptcy, and represent you in the proceeding of filling a bankruptcy request to its completion.