Best Bankruptcy Lawyers in Phuket

About Bankruptcy Law in Phuket, Thailand

In Phuket, Thailand, like in the rest of the country, Bankruptcy Law is primarily guided by the Bankruptcy Act B.E. 2483 (1940) and the Business Reorganization Act B.E. 2542 (1999). These laws encompass the legal framework for insolvency and bankruptcy issues in Thailand. Bankruptcy proceeding is instigated when a debtor fails to repay a certain amount of debt to one or numerous creditors, while business reorganization aims to assist financially distressed businesses regain their footing. It is crucial for both businesses and individuals to understand that bankruptcy isn't always the end and getting appropriate legal help can tremendously influence the outcome.

Why You May Need a Lawyer

The process of filing for bankruptcy or navigating through business reorganization in Thailand can be complicated and time-consuming. Legal guidance can help individuals understand their rights, obligations, and potential outcomes. A lawyer can provide assistance in gathering relevant documentation, submitting the required applications to the courts, and representing the debtor in court. Moreover, matters of international jurisdiction, debt restructuring, compliance with local laws, and negotiations with creditors are best dealt with legal professional assistance.

Local Laws Overview

The Bankruptcy Act (1940) outlines that an individual or corporate body can be adjudged bankrupt through court proceedings if they owe one or more creditors over 1 million Baht in Phuket. The debtor or creditor can initiate the bankruptcy application. The Business Reorganization Act (1999) allows a debtor business with a minimum debt of 10 million Baht, which cannot repay debts, to apply for reorganization with the courts. The proceedings include the appointment of a plan preparer or administrator to come up with a recovery plan, which is then voted on by the creditors. The court may grant a debt discharge following successful completion of the bankruptcy or reorganization proceedings, freeing the debtor from further obligations.

Frequently Asked Questions

1. What debts are exempt from bankruptcy?

In Thai legislation, some debts are not discharged by bankruptcy; such as taxes, court fines, student loans, debts acquired through fraudulent acts, and certain liabilities under labor laws.

2. Can a foreigner file for bankruptcy in Thailand?

Yes, foreigners who have acquired debts within the country and are unable to repay them can file for bankruptcy according to Thai law.

3. What is the process to file for bankruptcy?

An application accompanied by relevant documents should be submitted to the Central Bankruptcy Court. A creditor or debtor may file the application following the conditions in the Bankruptcy Act.

4. What happens to the property in bankruptcy?

The property and assets of the bankrupt (except the ones exempt by law) vest in the Official Receiver to be liquidated for debt repayment.

5. How does business reorganization work?

A plan preparer, usually a legal professional, is appointed. They develop a recovery strategy that the creditors approve in a meeting.

6. Is there a way to protect my assets?

Thai law provides some exceptions on what property is included in the bankrupt estate. Seek legal advice to utilize this provision.

7. Can bankruptcy stop my creditors from contacting me?

Once the bankruptcy application is accepted, a protection order may prevent further actions from the creditors until the court's decision.

8. What are the repercussions of being adjudged bankrupt?

It can affect your credit score, property, and professional standing. In some cases, the exercise of certain civil rights can be restricted.

9. Can a bankrupt do business?

A bankrupt individual cannot enter into certain types of contracts or run a business without court or Official Receiver's consent.

10. Can an absconding debtor be forced to return to Thailand?

If there are grounds to believe that a debtor has fled to avoid repayment, a court order may be issued to bring them to Thailand.

Additional Resources

The Central Bankruptcy Court, the Official Receiver's office, or the Department of Business Development are useful resources that can be contacted for additional bankruptcy-related information.

Next Steps

If you find yourself in need of legal advice or assistance with filing for bankruptcy, find a lawyer who specializes in bankruptcy law in Thailand. It is important to ensure you fully understand your rights and obligations before you proceed with any legal action.