Bankruptcy case - athiwatLawyer.com

Bankruptcy Cases – Procedures and Conditions for Filing a Case

Before reaching the bankruptcy filing stage,
when a debtor is sued, the court will examine evidence to determine the truth. If it is determined that the debtor has excessive debts as stipulated by law and there are reasonable grounds for bankruptcy, the court will issue an order of “final bankruptcy.” Once the court issues an order of bankruptcy, it is considered only the beginning of the bankruptcy case. The court will not immediately adjudicate the debtor bankrupt.
– In such cases, debtors who are in government service are not disqualified from being civil servants and can continue to serve until the court adjudicates bankruptcy.
– When the court issues an order of bankruptcy, whether temporary or final, the court will send a letter of the order to the bankruptcy receiver.

Conditions for Bankruptcy Filing
The bankruptcy law stipulates the conditions for filing a bankruptcy case. Namely:
– In the case of a natural person,
the debt is owed to one or more creditors in a total amount of not less than 1 million baht.
– In the case of a juristic person,
the debt must be owed to one or more creditors in a total amount of not less than 2 million baht.
– The nature of the debt:
The debt must be a debt whose amount can be determined with certainty and meets the criteria of the debtor being “insolvent.”

How long does it take to be discharged from bankruptcy?
1. In the case of a natural person who is not a dishonest bankrupt, the period is 3 years from the date of the court’s bankruptcy judgment. However, if the person has previously been adjudged bankrupt and the 5-year period has not yet elapsed, the period must be extended to 5 years. Or if the person is a dishonest bankrupt, the period must be extended to 10 years.
2. Upon the 3-year period, the person must be discharged from bankruptcy. The effect of the law is immediately effective from the date the court adjudicates bankruptcy under Section 81/1 of the Bankruptcy Act, unless there are circumstances that require the bankrupt to contact the Official Receiver to request discharge.
3. Once discharged from bankruptcy, the bankrupt can work and conduct normal transactions, but will still have the duty to assist the Official Receiver in managing assets that may be divided in the bankruptcy case.
Release from Bankruptcy
For bankrupt persons who cooperate well in giving testimony and meeting with the Official Receiver, upon the expiration of the time limit, they will be immediately discharged from bankruptcy. This discharge from bankruptcy will also release the bankrupt from all debts, except for debts related to taxes or debts arising from the bankrupt’s fraud or deception under Section 81/1 of the Bankruptcy Act.