About Bankruptcy & Debt in Bangkok, Thailand
Bankruptcy and debt in Bangkok are governed by the Bankruptcy Act B.E. 2483 (1940) and the Civil and Commercial Code. These laws provide measures for both individuals and corporations who find themselves unable to meet financial obligations. Declaring bankruptcy is a serious matter that can have long-term effects on your financial and personal life. If you're struggling with debt problems, it's advisable to seek professional advice early to understand the implications and processes involved in declaring bankruptcy.
Why You May Need a Lawyer
Dealing with bankruptcy and debt can be a complex process, involving intricate legal procedures and negotiations with creditors. A lawyer can help you navigate this complicated landscape, advise you on available options, negotiate repayment schemes with your creditors, and represent your interests in court. If you're facing litigation due to debt, or if your assets are at risk, it's particularly important to seek legal help.
Local Laws Overview
In Thailand, you may declare bankruptcy if your clear debts exceed 1 million baht for individuals, and 10 million baht for corporations. In this case, the court appoints a receiver who liquidates your assets and uses the revenue to pay off your creditors.
The law also foresees debt restructuring as an option. To be eligible, you need to be unable to repay your debt, but have a reasonable chance of successfully restructuring. A repayment plan is devised and must be approved by at least half of your creditors.
Frequently Asked Questions
1. Can I save my assets if I declare bankruptcy?
No. All your assets will be liquidated and used to repay your debt. However, some prescribed liabilities, like wages owed, are given priority to be paid first.
2. What debts can be discharged in bankruptcy?
Most unsecured debts can be discharged, such as credit card debts, medical bills, and personal loans. However, some debts cannot be discharged, including certain taxes and fines, alimonies, and student loans.
3. Can I operate a business while in bankruptcy?
Individuals declared bankrupt may not operate any business during the bankruptcy period, unless with special dispensation from the court. Corporations can continue operating under the guidance of the appointed receiver.
4. Until when do I have to pay my debts?
The bankruptcy process usually takes 1 to 5 years, after which most of your debts are discharged. Some debts, like taxes and alimonies, must always be paid.
5. Can creditors still claim money after bankruptcy declaration?
No. Once bankruptcy is declared, creditors cannot take any further action to collect their money outside of the bankruptcy proceedings.
Additional Resources
The Official Receiver, a department of The Legal Execution Department under The Ministry of Justice, is responsible for managing the bankruptcy process in Thailand and provides information and resources. Various local non-profit organizations provide free legal advice and services to individuals facing bankruptcy or debt-related issues.
Next Steps
If you're facing debt issues in Bangkok, the first step is to consult with a local, reputable lawyer specializing in bankruptcy and debt. They will assess your position, advise whether or not bankruptcy is the best option, and guide you through the necessary procedures, helping you to protect your rights and manage this stressful situation.
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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
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