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  • 20-10-19

    Oman applies new 'Bankruptcy and Insolvency Law' in 2020

    (MENAFN) A new bankruptcy law that will govern the conditions under which people in Oman can declare bankruptcy, will come into effect from 1 July 2020 onwards, it will help them to come out of bankruptcy quickly.

    The law was passed under Royal Decree number 53/2019, and includes a set of rules and regulations pertaining to the above, as well as conditions for the bankrupt party to pay off his creditors, according to a restructuring plan that has been previously agreed upon.

    The acting director of the legal Department at the ministry of Commerce and Industry (MoCI), Mohamad bin Rashid Al Badi, said: "The debtor who has stopped paying his debts can apply to the Audit and Control of Commercial Establishments Department of the MoCI to request restructuring through settling the disputes with creditors, provided the debtor continued his business during the two years preceding the filing of the application, and that no final judgment has been issued against him towards declaring bankruptcy.

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