Best Bankruptcy Lawyers in Phuket

About Bankruptcy Law in Phuket, Thailand

In Phuket, Thailand, just like other parts of the country, bankruptcy law falls under the Thai Bankruptcy Act of 2483 (20th Century) and The Thai Civil and Commercial Code. The law governs the rights and duties of debtors and creditors in situations of insolvency. Individuals or businesses who cannot meet their financial obligations and debts can file for bankruptcy. Also, creditors may petition for a debtor to be declared bankrupt if they owe at least two creditors more than 1 million baht.

Why You May Need a Lawyer

Filing for bankruptcy in Phuket, Thailand is a complex legal process that involves a deep understanding of the law. A bankruptcy lawyer can help you understand your rights and obligations, guide you through the complex legal process of filing a bankruptcy petition, and help protect your assets to the greatest extent possible. Your lawyer will also ensure that all procedures are correctly and promptly completed. Moreover, a bankruptcy lawyer can represent you in court proceedings, and help with negotiations with your creditors. The goal is to alleviate the significant stress that bankruptcy processes can bring and ensure that your best interests are catered for at all times.

Local Laws Overview

The Thai Bankruptcy Act stipulates the rules about insolvency in Thailand and provides two main forms of insolvency: Suspension of Payment (or Reorganization) and Absolute Receivership (Bankruptcy). If you are an individual or a company that is unable to meet your debt obligations, you can file for either of these bankruptcy forms, depending on your situation. Absolute receivership requires liquidating all of your assets to repay your creditors, while Suspension of Payment allows you to create a plan to repay your debts over time. However, to file for Suspension of Payment, you must owe at least two creditors more than 10 million baht.

Frequently Asked Questions

What is Absolute Receivership?

Absolute Receivership, also known as bankruptcy, requires the liquidation of the debtor's assets to repay the creditors. A person or a juristic person may file for bankruptcy if they owe at least two creditors more than 1 million baht.

What is Suspension of Payment?

Suspension of Payment is a form of reorganization that allows a debtor to create a plan to pay off their debts over time. This form of bankruptcy is only available to those who owe at least two creditors more than 10 million baht.

Can a Creditor make me Bankrupt?

Yes. Creditors can file a request in the court for a debtor to be declared bankrupt if they can demonstrate that the debtor is unable to pay their outstanding debts.

What happens after Bankruptcy Declaration?

After the declaration of bankruptcy, all of the debtor's assets are sold, and the proceeds are used to pay off the creditors. If the debtor is an individual, they are often barred from managing any business for a certain period.

Can I keep any Assets after declaring Bankruptcy?

Under Thai law, there are some exemptions. An individual can generally retain clothing, bedding, ordinary household items, tools necessary for the debtor's profession, and a modest amount of salary or wages, among other things.

Can a Bankrupt Person travel internationally?

A person declared bankrupt must get court permission to travel outside Thailand. Any violation of this rule may result in imprisonment or fines.

What if I have joint debts with a Bankrupt Person?

If you have joint debts with a person who declares bankruptcy, you are typically responsible for the full amount of the debt.

Can Bankruptcy clear all my debts?

No, bankruptcy cannot clear all types of debts. Certain types of debts are exempt from discharge, including child support, alimony debts, and certain tax obligations.

What is the role of Bankruptcy Trustees?

A bankruptcy trustee manages the property of a bankrupt person. They are responsible for realizing the debtor's assets and distributing the proceeds to creditors. They also manage the affairs of the debtor.

Additional Resources

Several resources can provide further information regarding Bankruptcy laws in Phuket, Thailand. These include the website of the Ministry of Justice Thailand, The Thai Civil and Commercial Code, and The Thai Bankruptcy Act. Additionally, The Legal Execution Department can offer valuable guidance.

Next Steps

If you are considering filing for bankruptcy in Phuket, Thailand, it is advised that you seek legal advice as early as possible. Find a reputable bankruptcy lawyer who specializes in Thai bankruptcy law. They can guide you through the process and help you make the best decision for your specific circumstances.