Best Bankruptcy & Debt Lawyers in Phuket

About Bankruptcy & Debt Law in Phuket, Thailand

Bankruptcy and debt law in Phuket, Thailand, relates to the process by which individuals or businesses can declare themselves or be declared unable to pay their debts. In Thailand, bankruptcy law is based on the Civil and Commercial Code and the Bankruptcy Act B.E. 2483. According to these statutes, if an individual in Thailand has more than THB 1 million in debt or a business has more than THB 2 million in debt, they can file for bankruptcy. Bankruptcy and debt management come with a wide range of legal complexities and implications, making it highly essential to seek legal advice in this field promptly.

Why You May Need a Lawyer

There are several situations where you may need a lawyer for bankruptcy and debt-related concerns in Phuket. If you are being hounded by creditors and unable to repay your debt, a lawyer can guide you through the process of filing for bankruptcy. If you're a business owner facing insolvency, a lawyer can explain the legal options available to you, such as debt restructuring. A lawyer can also help you navigate the legal proceedings and paperwork involved in declaring bankruptcy. Lastly, if you are a creditor and the debtor has filed for bankruptcy, a lawyer can assist you in the legal process to recover your funds.

Local Laws Overview

In Phuket, as is the case throughout Thailand, there are two main types of bankruptcy: absolute and composition bankruptcy. Absolute bankruptcy involves liquidating all assets to pay off debts, whereas composition bankruptcy allows the debtor to negotiate a repayment plan with creditors. If the debtor fails to adhere to this plan, they may face absolute bankruptcy. The laws also dictate that after three years of being declared bankrupt, an individual can request a discharge from bankruptcy, granted they meet specific conditions set by the court.

Frequently Asked Questions

1. Can I file for bankruptcy due to credit card debt?

Yes, in Thailand, you can file for bankruptcy due to unsecured debts, such as credit card debt, if it exceeds THB 1 million.

2. How does the process of declaring bankruptcy begin?

The process usually begins by filing a petition to the court. This can be done voluntarily by the debtor or involuntarily by the creditors.

3. What happens to my assets when I declare bankruptcy?

Under absolute bankruptcy, all your assets are liquidated to pay off your debts. Some necessary items may be excluded at court discretion.

4. How lengthy is the bankruptcy process?

The bankruptcy process duration can vary depending on the complexities of each case. It may take several months to a few years.

5. How will bankruptcy affect my future credit?

Bankruptcy severely affects your credit score, and it will stay on your credit report in Thailand for 10 years.

6. What costs are associated with filing for bankruptcy?

The costs include attorney fees, court fees, and other various administrative fees.

7. Can bankruptcy discharge all of my debts?

No, certain debts, such as taxes, fines, student loans, and matrimonial debts, cannot be discharged.

8. What is the role of the court in the bankruptcy process?

The court manages the bankruptcy process, including reviewing the bankruptcy petition, approving the liquidation or repayment plan, and overseeing the process to ensure it aligns with the law.

9. What is debt restructuring?

Debt restructuring is an arrangement with creditors to modify the debt terms, often used by businesses to avoid the consequences of bankruptcy.

10. Can I protect any of my properties from being liquidated?

The court may exclude necessary properties from liquidation. Protection of other properties depends on the specific circumstances and laws.

Additional Resources

There are various resources that you can consult for further information. The Thai Government’s Official Gazette is an official source of information on all tribunals and remains a valid resource for getting updates on bankruptcy legislation. The Central Bankruptcy Court of Thailand offers information about bankruptcy procedures and related news announcements on its official website.

Next Steps

If you find yourself in need of legal assistance related to bankruptcy or debt, seek the advice of a legal expert immediately. Consult a lawyer who specializes in bankruptcy and debt in Phuket. The lawyer will guide you through the complete process, explaining your legal options and helping you make an informed decision. It's also crucial to collect and organize all relevant financial documents as they will be required in legal proceedings.