Financial Restructuring and Bankruptcy Law

Article 138 — Article (138) Repayment of Debts to Secured Creditors

Part Three: Declaration of Bankruptcy · Chapter Three: Management of the Debtor's Assets and Business

1. The Bankruptcy Court may, based on the Trustee's proposal, order, when necessary, that the first amounts collected for the bankruptcy account be used to repay the debts of creditors who have a lien over the debtor's assets and whose names are included in the final list of undisputed debts, within the limits of the amount of assets serving as guarantees for the debt on the date of payment of those amounts. 2. If there is a dispute over debts, it may not be repaid until the dispute is adjudicated by a final judgment, and the Bankruptcy Court has jurisdiction to decide these disputes.

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