Year: 2021
Type: article
Abstract: This research aims to clarify the preventive settlement for small debtors in the new Saudi bankruptcy system, where the idea of preventive settlement for small debtors is an attempt to find a balance between protecting creditors and the survival of economic projects and avoiding their liquidation, and enhancing the investment environment and encouraging small and medium enterprises.The new Saudi bankruptcy system contained a set of Rules and procedures that aim to enable the debtor, especially the bankrupt, defaulting small debtor, or the one who is expected to suffer from turbulent financial conditions, to benefit from bankruptcy procedures to regulate his financial conditions and to resume his activity and contribute to the support and development of the economy.This research came in three sections, the first deals with the nature of the preventive settlement from bankruptcy and its distinction from other similar terms, the second deals with the terms of the preventive settlement for small debtors, the third deals with the preventive settlement procedures for small debtors from bankruptcy, and the fourth section deals with the effects of the preventive settlement for small debtors from bankruptcy The study reached a number of results, the most important of which is that the preventive settlement procedure for small debtors is distinguished from other bankruptcy procedures in that it is carried out within a reasonable period of time and for a simple cost commensurate with small debtors.The study also recommends that, when requesting the opening of the preventive settlement for small debtors, it is stipulated based on the availability of default, or the financial turmoil with which default is feared; To enclose with his request, in addition to the required information and documents, a report from an independent audit office licensed by law, stating that there is a state of default, or a financial turmoil with which there is fear of default.
Author: بندر بن خالد الذبياني
Language: Arabic
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4205612537