Financial Restructuring and Bankruptcy Law

Article 250 — Article (250) Cases where Debtor may not be Discharged

Part Four: Common Provisions · Chapter Three: Procedures for Small Debtors

The debtor may not be discharged from the remainder of the debt in accordance with Article (248) of this Law in the following cases: 1. If the debt is owed under the Personal Status Law, or arises from debts owed to the public treasury or is guaranteed by personal insurance. 2. If the debtor conceals any information or documents required to be provided under this Law, he was ordered by the Bankruptcy Court to submit them but he refrains from submitting them or he submits misleading documents or information. 3. If the debtor engages in any behavior resulting in the delay with respect to the proceedings stipulated in this Law. 4. If the debtor has previously benefited from the discharge of its debt in accordance with this Law during the six (6) years preceding the date of expiration of the bankruptcy proceeding in respect of which it applied for a discharge of the debt. 5. Issuance of a final judgment against the debtor imposing a deprivation of liberty penalty for any crime affecting the national economy or any of the crimes stipulated in this Law, unless it has been rehabilitated. 6. If the criminal case relating to any of the crimes mentioned in Clause (5) of this Article is still under investigation or trial, the procedures for requesting a discharge of the debt and all measures taken against the debtor to collect the remainder of the debt shall be suspended until a final judgment is issued thereon. In this case, the Bankruptcy Court may issue whatever precautionary measures it deems appropriate to preserve the rights of creditors.

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