Questions & Answers
How to claim a debt from a civil company after filing the execution?
I won a civil court case against a civil company with a professional license (Not an LLC company). I started an execution case for AED 262,800.
One of the partners of the civil company informed me that his company will file for bankruptcy and I will not get any money at all.
He said that all the company debts will be wiped away and he will not get a jail term and he will not have to pay anything.
Article (671) of Civil Transactions Law regarding civil companies states that partners have to pay the debts of the company.
(A) Which view is legally correct? Is it possible to demand money directly from the partners of a civil company after the company is declared bankrupt?
(B) How should I protect my rights if the debtor Civil company files for bankruptcy?
(Important Question C) Will the court automatically distribute the debt of the civil company to its partners upon declaration of bankruptcy? Or do I have to start a new court case against the partners after the civil company is declared bankrupt?
Dear Questioner,
The partner who spoke with you is mostly bluffing, and his statements are inaccurate.
Bankruptcy cases are long and difficult, and not all companies that file for bankruptcy get their request approved by courts.
We suggest that you go further in your enforcement and issue arrest warrants against the partners in addition to seizing their bank accounts, vehicles and all other assets you know of.
For more information, contact us on WhatsApp.
Hello,
As per your query please note that the partners are liable to pay even if he filed bankruptcy.
Once, the company files bankruptcy, you can file the application as a creditor. You can proceed with the execution case.
Please call or e-mail us.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of law.
