The Ministry of Finance stated that Law No. 19 of 2019 on insolvency of individuals defined the method of distributing the debtor's funds after liquidation through the settlement plan.
She explained that there are three types of debt, namely: «secured by mortgage», «excellent», and «regular», pointing to two types of owners priority repayment, namely secured debt mortgage, and excellent debt.
According to the law, according to the law, the Secretary, after the approval of the court, shall distribute the proceeds of liquidation according to the priority, provided that the arrangement of the holders of the "secured debts is a mortgage" before other creditors with "excellent" or "ordinary" debts, to the extent that Their guarantees.
The following categories of debts are excellent and have priority over the holders of regular debts. Their repayment is arranged according to the following: judicial fees and expenses, the fees and expenses of the expert and the trustee, and the expenses or expenses that have been disbursed by a court decision to serve the interest of the common creditors in maintaining The debtors' funds and their liquidation, the end of service benefits and the wages due to the workers and employees of the debtor, followed by debts of alimony due to the debtor by a court of competent jurisdiction, and finally the amounts due to the government authorities.
She explained that the «Secretary» to conduct the distribution of liquidation revenues after each sale, or after the accumulation of funds resulting from the total sales, and «Secretary» after each sale to provide a distribution list to submit to the court for approval.
According to the Finance, the creditor shall receive his share of the proceeds of the distribution at the place where the Secretary performs his duties, unless otherwise agreed between the Secretary and the creditor.
According to the law, shares of debts that are not finally accepted and those which are objected in accordance with the provisions of the law are kept in the treasury of the court until they are finally settled.
The Ministry of Finance pointed out that it must be paid to the secured creditor by pledging the proceeds of the proceeds from the sale of the funds secured by his debt.If the value of the secured assets does not suffice to meet the entire debt secured by a mortgage or concession, the remaining outstanding debt shall be considered as the normal debt. The Secretary shall also hand over any excess funds to the debtor upon liquidation after fulfilling all its obligations.
She stressed that «if one of the creditors refrain from receiving his debt, or is absent, or could not know the place of residence, it may be deposited debt in the treasury of the court, and the receipt of the deposit as a clearance».
The Ministry of Finance referred to cases specified by law to file an insolvency application, either by the debtor itself or by creditors, as the debtor must apply to the court to open the insolvency proceedings and liquidate his funds in case he stops paying any of his debts on the due dates for a period. Over 50 consecutive working days, due to his inability to meet these debts.
She continued: «The creditor or a group of creditors for a minimum of 200 thousand dirhams, apply to the court to open the proceedings of insolvency of the debtor and the liquidation of funds, if the creditor had previously excused the debtor to meet the debt owed, and did not initiate the debtor within 50 successive working days of A date to inform him of the excuse ».
The request for opening the insolvency proceedings and the liquidation of the funds from the creditor shall be submitted to the court, together with the documents proving the indebtedness, indicating the amount of the debt, the maturity dates, any collateral associated with it, if any, and a copy of the said notice.