Bankruptcy & Business Rehabilitation
The creditor's last resort and the debtor's second chance, two faces of the same statute.
Bankruptcy is not just harder debt collection, it pools every debt into one process. Creditors who move late or miss the proof-of-debt window can walk away with nothing despite a real debt.
Rehabilitation, meanwhile, freezes every creditor at once, the automatic stay, giving a viable business room to restructure and survive.
What this dispute is, and where it comes from
Disputes where an insolvent debtor faces bankruptcy as the creditor's last resort, or a viable business seeks rehabilitation. Causes: liquidity collapse, guaranteeing others' debts, or credit piled beyond capacity.
Documents & evidence to gather first
- Debt contracts and any judgment
- Both demand letters with registered-mail receipts
- The debtor's assets and liabilities
- Company financials, for rehabilitation
- All creditors and amounts owed
How we can help
Legal knowledge worth knowing
A creditor may petition where the debtor is insolvent and owes a liquidated sum of at least THB 1 million (individuals) or 2 million (juristic persons).
Insolvency is presumed from facts such as fruitless execution, absconding, or ignoring two demand letters at least 30 days apart.
Proofs of debt must reach the official receiver within 2 months of publication of the absolute receivership order, late claims are, as a rule, lost.
Rehabilitation requires debts of at least THB 10 million and a prospect of recovery, and once the petition is accepted, the automatic stay halts suits and executions.
Supreme Court No. 790/2510, the words not less than thirty days apart in Section 8(9) of the bankruptcy legislation mean simply that thirty days must fall between the first demand and the second.
Limitation periods and deadlines you cannot miss
- 2 mthsProofs of debt, from publication of the receivership order
- 30 daysMinimum spacing of the two statutory demands
- 3 yrsAutomatic discharge for individuals (as a rule)
The above is a brief summary of legal principles for general knowledge only, not advice on any specific case. Statutes may have been amended and application always turns on the facts. Please verify the current law or consult an attorney before acting.