The Egyptian law on restructuring, protective conciliation, and bankruptcy has introduced specific conditions and controls for regaining creditworthiness for bankrupt individuals. According to Article 240 of the law, a bankrupt individual can have their creditworthiness restored, even if the period specified in Article 239 has not expired, if they have paid all their debts, including principal, expenses, and interest, within a period not exceeding two years. This also applies to partners in a company that has been declared bankrupt.
In cases where a bankrupt individual is a partner in a company that has been declared bankrupt, their creditworthiness can only be restored if they have paid all the company's debts, including principal, expenses, and interest, within a period not exceeding two years. Article 239 states that, except in cases of bankruptcy due to fraud, all rights that were lost by the bankrupt individual will be restored by law after three years have passed from the date of the end of the bankruptcy proceedings.
The law also provides for exceptions to the conditions for regaining creditworthiness. According to Article 341, a bankrupt individual can have their creditworthiness restored, even if the period specified in Article 239 has not expired, if they have obtained a settlement from their creditors and fulfilled its conditions. This also applies to partners in a company that has been declared bankrupt if they have obtained a separate settlement and fulfilled its conditions.
Another condition for regaining creditworthiness is if the bankrupt individual can prove that their creditors have released them from all debts or have unanimously agreed to restore their creditworthiness. Article 242 states that if a creditor refuses to receive their debt or is absent or unreachable, the debt can be deposited with the court, and the deposit receipt will serve as proof of payment.
The law also specifies that a bankrupt individual who has been convicted of a crime of bankruptcy due to negligence will not have their creditworthiness restored until they have served their sentence or have been pardoned or the sentence has expired. In cases of bankruptcy due to fraud, the individual will not have their creditworthiness restored until six years have passed since serving their sentence or being pardoned.
In all cases, creditworthiness can only be restored if the bankrupt individual has paid all their debts, including principal, expenses, and interest, within a period not exceeding two years, or has made arrangements with their creditors. Article 243 emphasizes that the payment of debts is a crucial condition for regaining creditworthiness.
Finally, Article 244 states that creditworthiness can be restored to a bankrupt individual after their death, at the request of one of their heirs, in accordance with the provisions of the previous articles. This allows for the restoration of creditworthiness to be pursued even after the individual's passing.
Key points
- - Egyptian law sets conditions for bankrupt individuals to regain creditworthiness, including paying debts within two years. - Exceptions to conditions include obtaining a settlement from creditors or having creditors release individual from debts. - Law also specifies that certain crimes, such as bankruptcy due to fraud, have additional requirements for regaining creditworthiness.
