THE NECESSITY OF FULFILLING FORMAL APPLICATION REQUIREMENTS FOR OPENING BANKRUPTCY PROCEDURES UNDER SAUDI LAW (AN ANALYTICAL STUDY)

Abstract

There is no doubt that protecting the insolvent debtor is a matter of considerable importance in the economic sphere, insofar as it helps to prevent commercial undertakings from collapsing. To this end, legislation has been enacted that allows the preparation of rescue plans as soon as early signs of economic difficulty appear in such enterprises. The Saudi Bankruptcy Law sets out the procedures to be followed for both creditor and debtor, and it establishes practical means by which the debtor’s rights are clearly safeguarded, attaching multiple effects that attest to the seriousness with which these protections are pursued. Among these means is the requirement that any person involved in a bankruptcy matter comply with formal, procedural filings designed to protect -and alert- the debtor. This study seeks to shed light on that mechanism.