Bankruptcy Law

The Bankruptcy Committee shall initiate the sale of bankruptcy assets, if any, from the date of initiation of the administrative liquidation procedure, unless it decides that the sale proceeds are insufficient, as specified in the Regulations. Article 179 Termination of the Administrative Liquidation Procedure 1. The Bankruptcy Committee shall terminate the administrative liquidation procedure upon completion of the sale of the bankruptcy assets, if any, and conclusion of lawsuits to which the debtor is party within 12 months from the date of initiation of the procedure. However, the Bankruptcy Committee may extend the administrative liquidation procedure for an additional period not exceeding 90 days, if necessary. 2. The procedure shall be deemed terminated upon the Bankruptcy Committee’s deposit of its decision to terminate the procedure with the court, along with the balance sheets and final report of the procedure as well as any other requirement specified by the Regulations. 3. Termination of the procedure shall entail dissolution if the debtor is a legal person. 4. The Bankruptcy Committee shall deposit with the Bankruptcy Register and the commercial register a proof of the termination of the procedure, as specified in the Regulations. 5. The debtor’s name shall be removed from the Bankruptcy Register 30 days from the date of depositing with the Bankruptcy Register and the commercial register a proof of the termination of the procedure. The debtor’s registration, if any, shall be stricken from the commercial register. Article 180 Termination of the Administrative Liquidation Procedure The Regulations shall specify the procedures that must be followed if it is established during the administrative liquidation procedure that the sale proceeds of the bankruptcy assets are sufficient to cover the expenses of the liquidation procedure or the small debtors' liquidation procedure. Article 181 Termination of the Administrative Liquidation Procedure 1. Removal of the name of a natural person debtor from the Bankruptcy Register shall allow him to engage in commercial, professional, or for- profit activities. 2. A natural person debtor shall not be discharged from any outstanding debt unless pursuant to a special or public discharge from creditors. 3. A natural person debtor who is not discharged for an outstanding debt shall be deemed bankrupt vis-a-vis outstanding rights of creditors even after the removal of his name from the Bankruptcy Register, for a period of 24 months from the date of termination of the administrative liquidation procedure. During such period, said creditors may not file a petition with the court for the initiation of any bankruptcy procedures. The Regulations shall set the procedures for the creditors’ claims of outstanding debts during such period. Chapter 10 Financing