This article offers the reader information about the process for bankruptcy in Thailand.
Businesses rise and businesses fall. Take the pandemic as an example of what can happen to businesses; many thousands had no choice but to close. The number one reason for business closure is the inability to pay the creditors, in which case, government officials can initiate bankruptcy proceedings, although it is usually the business owner who files for bankruptcy, under advice from a lawyer.
1 Million Baht
At the time of writing this article, if a creditor is owed more than 1 million baht, they can file bankruptcy action in an effort to recover the debt. Imagine you are living in the south of Thailand and a company owes you a considerable amount, consult with a legal expert. You can start with an online search for ‘Chinese speaking lawyer near me in Koh Samui‘, if you are foreigner from China. Western expats would go for an English-speaking attorney. These multilingual lawyers can help you file to reclaim the debt. If you wish to file bankruptcy against a corporation, the debt must be over 2 million baht.
Debt Insolvency
In order to file for bankruptcy, the debt must be insolvent, which could be due to:
- The transfer of property rights.
- The debtor leaving the country.
- The debtor refusing to pay, citing reasons.
- Absconds with all assets, whereabouts unknown.
- Informing creditors of the inability to pay.
- Failure to respond to 2 written notices, sent by registered mail.
Many people find themselves in a position where they are owed money by a business and providing protocols are followed, the creditor can file to have the company assets sold and the debt repaid, with interest. To summarise, the creditor must prove that the debt is insolvent to proceed to file bankruptcy.
Bankruptcy Discharge
A period of 3 years must elapse before a bankruptcy notice is removed from the record. If said person has been bankrupt in the 5 years previous, the discharge period is 5 years. When a company is struggling, there are usually options; the company might be acquired in a takeover, or wishes to merge with a partner; a loan might be the answer if the future looks good and there are benefits for filing for bankruptcy. If you own a limited company and things are looking bleak, talk to a lawyer regarding the options you have. The sooner you take legal advice, the better.
Huge Compensation Payment
It can be that a company is sued, found liable and does not have enough assets to cover the awarded damages. In such a case, the company would go into bankruptcy and the assets auctioned off, while the proceeds are divided among the creditors. There is insurance to cover such costs and most companies are covered, which saves the business from certain closure.
Early Intervention
If you have a feeling that a debtor will default on an agreement in the near future, you can consult a litigation lawyer who can outline the correct procedure to recover the debt, then you can keep all documents and evidence to strengthen your claim. As soon as the repayment date passes, you can compose a letter requesting payment, which should be sent by registered mail and should you receive no response, you can send a second letter, clearly pointing out the agreement conditions and ask for a meeting to discuss the debt and potential repayment methods.
Extradition
When dealing with bankruptcy cases involving international implications, the expertise of Thailand extradition lawyers becomes invaluable. These specialised lawyers are well-versed in extradition laws and procedures, enabling them to assist clients who may be facing extradition due to bankruptcy-related offenses or financial fraud. Extradition lawyers carefully analyse extradition treaties and applicable laws to protect the rights of their clients and explore legal avenues to prevent or mitigate extradition proceedings. Their deep understanding of both bankruptcy law and international extradition ensures that individuals and businesses receive comprehensive legal representation, helping them navigate the intricate landscape of cross-border legal matters and achieve the best possible outcomes.
You might be disappointed and think the money owed cannot be recovered, so you chalk this one up as a learning experience, yet all is not lost. Seek out a litigation lawyer and find out what legal recourse can be taken. In many cases, the plaintiff is wared the full amount, plus interest.
