Oman Legal Experts Can Help You with Bankruptcy
Posted by Fatema Al Habsi Advocates & Legal Consultant on February 25th, 2021
The toughest and most serious challenge any business can experience is bankruptcy, declaring which allows a person or a business to be excused from the repayment of some of the debts. Failing to meet the financial responsibilities leads to bankruptcy, and the repercussion of which affects everyone involved.
Frustrating and disappointing situation like a bankruptcy requires the expert guidance oflegal advisors. There is no shortage of legal experts and different kinds of businesses in Oman, which makes the concept of bankruptcy and litigation very important.
The concept of bankruptcy
Commonly speaking, there are two types of bankruptcies. In the case of liquidation bankruptcy, the debtors have to surrender their assets, which is sold and distributed among the creditors. The debts are cleared permanently via this process. In the case of reorganization bankruptcy, the debtors have to undergo an installment plan to make repayment of the debt to creditors, which lets the debtor keep their properties.
Trusted legal consultants in Oman are always on vigil to help those who needs help to recover with their situation of bankruptcy. After the declaration of bankruptcy, the debt settlement is done in the following order:
• Salaries and wages of the employees
• Adequate taxes and other dues to the Government
• Secured creditors
• Unsecured creditors
Because of declaring bankruptcy, a company may face liquidation, and removed from the register of companies.
Oman bankruptcy law
The commercial code 1990 and the commercial company law 2019 sets the parameter for the bankruptcy of businesses and the liquidation of companies. Oman recently adopted a new bankruptcy regulation, which is primarily set to safeguard the employees, who are at risk of not receiving their salaries in case of a bankruptcy. This regulation is under the review of the economic committee at present.
The bankruptcy law consists of four different parts including restructuring, preventive composition, bankruptcy and rehabilitation of the bankrupt. Assistance from a trusted law firm in Oman will be beneficial for any trader who wishes to undergo the procedure of filing bankruptcy.
Declaring bankruptcy
A company must submit a petition, applying for bankruptcy or the court may declare a business bankrupt on its own. If the bankrupt is charged with fraudulent bankruptcy, they will fall under Oman penal law. Any trader wishes to submit a petition for bankruptcy may get in touch with a good Oman law consultant firm, who will provide assistance on this matter.
Legal help
As stated earlier, the implementation of the new bankruptcy law aims to help the traders who are failing their financial obligations. With the help of this new regulation, it will be easier to declare bankruptcy andrecovering from the situation within little time. The new law focusing on reconstructing this will be helpful to a trader who wishes to settle the debt with the creditor as well as overcoming the situation.
Legal advocates in Oman are always extending their helping hand to all those who need it to recover themselves from bankruptcy. With the proper guidance and expert legal advice, it is relatively easier to understand the regulations and getting the much-needed help to recover from the situation.
