SAUDI ARABIA

New Implementation Law to abolish detention and canceling of online services of debt defaulters

September 07, 2021

Saudi Gazette report

RIYADH — There are provisions in the new Judicial Implementation Law to prevent detention of insolvents and not canceling electronic services for them. Those in the judicial sector are awaiting the issuance of the new law that contains many radical amendments in debt cases.

There is also a provision to award jail term up of to five years for the public sector employees in the event of their involvement in the prevention or obstruction of the implementation of the verdict as this is considered as a crime against honesty.

The amendments include abolishing the provision of imprisonment of defaulters of payment and canceling the suspension of government services for them. Another major provision in the law is addressing the discrepancy between the travel ban order and the decision to terminate the residency permit (iqama) of non-Saudi insolvents.

The implementation procedures of court orders also bar financial dealings with those who have defaulted in carrying out financial rights.

The law advocates the disclosure of those convicts against whom the implementation procedures started as well as against those who are suspected of smuggling funds to them, in addition to criminalizing the act of supplying of incorrect information.

It also activates the tracking of illegal funds and giving the court broader powers in tracking, interrogating, recovering and invalidating such funds and transactions.

The law stipulates that it is not permissible to issue orders on the seizure and enforcement of the funds owned by the state.

Similar is the case with the house in which the insolvent and his legal dependents reside as well as his means of travel if their values do not exceed the amount of his solvency.

They may be seized and the verdict implemented if they are mortgaged to the creditor.

It is also not permissible to implement verdict on wages and salaries except by half of the total wage or salary in the verdict related to alimony debt while the amount of one-third of the total wage or salary for other debts.

In case of both alimony and other debts, half of the total wage or salary is allocated to the alimony debt, and one third of the other half to other debts.

If these debts are multiple, then the one-third of the other half shall be distributed among the creditors in accordance with the provisions of the law and the executive regulations.

The law also allows the insolvent to practice his profession or his craft and carry out his personal obligations, and the court shall assess his solvency, and decide on the amount of the government subsidies that can be extended to him.


September 07, 2021
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