{"id":3608,"date":"2024-02-19T14:31:45","date_gmt":"2024-02-19T07:31:45","guid":{"rendered":"https:\/\/champ-lawfirm.com\/?p=3608"},"modified":"2024-06-09T15:03:19","modified_gmt":"2024-06-09T08:03:19","slug":"what-is-bankruptcy","status":"publish","type":"post","link":"https:\/\/champ-lawfirm.com\/en\/what-is-bankruptcy\/","title":{"rendered":"What is Bankruptcy?"},"content":{"rendered":"

Table of Contents<\/span><\/h1>\n
\n

Bankruptcy is<\/b><\/a><\/p>\n

The consequences of insolvent individual<\/b><\/a><\/p>\n

The criteria for insolvency<\/b><\/a><\/p>\n

Disadvantages of Bankruptcy<\/b><\/a><\/p>\n

Insolvency, does it result in imprisonment<\/b><\/a><\/p>\n

Creditors, what to do if the debtor goes bankrupt<\/b><\/a><\/p>\n

Basic recommendations if facing bankruptcy<\/b><\/a><\/p>\n

Can an insolvent person work?<\/b><\/a><\/p>\n

Can an insolvent person engage in financial transactions?<\/b><\/a><\/p>\n

Can an insolvent person get insurance?<\/b><\/a><\/p>\n

Can an insolvent person operate a business?<\/b><\/a><\/p>\n

summarize<\/b><\/a><\/p>\n<\/blockquote>\n<\/a><\/span>\n

<\/div>\n

Bankruptcy is<\/b><\/span><\/em><\/h2>\n

It is a situation where an individual or a legal entity is in a state of being “insolvent.” In other words, they have accumulated a substantial amount of debt and lack the ability to repay their creditors.<\/p>\n

To enter a state of insolvency, individuals or legal entities need to go through a legal process known as bankruptcy. To ensure fairness in the entire process for both debtors and creditors.<\/p>\n

Insolvent is<\/p>\n

For individuals, it is required to have debts exceeding 1 million Baht, and for legal entities, it is necessary to have debts exceeding 2 million Baht<\/p>\n<\/a><\/span>\n

<\/div>\n

The consequences of insolvent individual<\/b><\/em><\/span><\/h2>\n

Being an insolvent individual has the following consequences, making it impossible to engage in any legal transactions, including various financial transactions, such as opening a bank account. It also results in the inability to hold positions in companies or various businesses.<\/p>\n<\/a><\/span>\n

<\/div>\n

The criteria for insolvency<\/span><\/em><\/strong><\/h2>\n

1. For individuals, it is required to have debts exceeding 1 million Baht
\n2. For legal entities, it is necessary to have debts exceeding 2 million Baht
\n3. A person who is inclined to have debts exceeding their ability to repay, or lacks the capability to settle debts with creditors.<\/p>\n<\/a><\/span>\n

<\/div>\n

Disadvantages of Bankruptcy<\/b><\/span><\/em><\/h2>\n

1.Unable to engage in any legal transactions whatsoever, including various financial transactions such as opening a bank account, transferring money, and withdrawing funds.<\/p>\n

2.Unable to apply for or be elected as a member of the House of Representatives or hold any political position. Additionally, ineligible for public service, and if already in public service, would be required to resign.<\/p>\n

3.Unable to hold a position in a company.<\/p>\n

4.Unable to travel abroad.<\/p>\n<\/a><\/span>\n

<\/div>\n

Insolvency, does it result in imprisonment<\/b><\/span><\/em><\/h2>\n

After the court issues a judgment, the debtor is required to report to the asset execution officer to attend a meeting with the creditors. They also need to prepare a monthly income and expenditure statement to present at the meeting and discuss with the asset execution officer.<\/p>\n

In general, during this period, any actions related to the assets must be prohibited. The debtor may be allowed to perform only certain actions, such as notifying the asset execution officer to request funds for reasonable living expenses. If there is a violation, such as secretly transferring or moving any assets during this period, the individual may face criminal penalties.<\/p>\n<\/a><\/span>\n

<\/div>\n

Creditors, what to do if the debtor goes bankrupt<\/b><\/span><\/em><\/h2>\n

1.In the initial steps, creditors should assist in gathering information about the debtor to provide details about the assets and the debtor’s address or information to the asset execution officer.<\/p>\n

2.Monitor and track the assets of the debtor or the insolvent individual, and then inform the asset execution officer to assist in the collection and sale of the debtor’s or insolvent individual’s assets.<\/p>\n

3.To file a debt repayment request, it must be done within 2 months from the date of the asset execution announcement.<\/p>\n

4.Inspect the debt repayment request as scheduled by the asset execution officer.<\/p>\n

5.Attend every creditor meeting and appear in court on the scheduled date for the examination of the debtor, as notified by the asset execution officer.<\/p>\n

6.Receive the share of the collected assets in the bankruptcy case, where the debtor may have funds to partially repay.<\/p>\n<\/a><\/span>\n

<\/div>\n

Basic recommendations if facing bankruptcy<\/b><\/span><\/em><\/h2>\n

1.When a debtor receives a debt collection letter, it is advisable to promptly negotiate with the creditor and consider making partial payments, such as 10-30% of the total debt.<\/p>\n

2.Debtors should negotiate for a debt reduction before facing bankruptcy proceedings. During the period when the debtor is insolvent, creditors may incur losses on the unrecoverable debts. Therefore, reaching an agreement is often more achievable as the total payment made by the debtor during insolvency can be considered a profit for the creditor.<\/p>\n

3.When receiving a court summons, it is advisable to promptly consult with a lawyer. It is not recommended to handle the matter personally, as it may result in a disadvantage or loss of rights.<\/p>\n\t

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