Bankruptcy Act Broadened

The Bankruptcy Act (No.9) B.E. 2559 (2016) became effective on 25 May 2016, broadening the provision relating to the reorganization of a debtor’s business to allow a debtor who is unable to repay his debt avoid bankruptcy.

Previously, such reorganization was limited only to debtors that were a limited company, a public limited company or any other juristic person as prescribed in the Ministerial Regulations. This amendment to the Act has widened the definition to include a debtor who is a natural person; a group of persons; a non – registered ordinary partnership; a registered ordinary partnership; a limited partnership; a limited company; any other juristic person as prescribed in the Ministerial Regulations that conducts business related to “ small or medium sized enterprises” and is registered with the Office of Small and Medium Enterprises Promotion or any other Government Agency.

 

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