Insolvency and enforcement · Legal glossary
BankruptcyIn Arabic: الإفلاس
Definition
Bankruptcy, in current Saudi usage, is the set of court procedures for a debtor who cannot pay its debts, or is likely to be unable to pay them. The procedures include protective settlement, financial restructuring and liquidation.
How it varies across the GCC
Article 2 of the Saudi Bankruptcy Law lists seven procedures, including the forms for small debtors. The bankruptcy laws of the other GCC states were not verified for this page, so no rule is attributed to them.
The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Bankruptcy Law, art. 2https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/68204119-84f1-4789-8fad-a9ec014c3788/1