Bankruptcy Law
Said Ibrahim Ambusaidi Advocates (SIA) in Muscat handles financial distress files across Oman under the Bankruptcy Law, Royal Decree 53/2019: restructuring and protective composition proceedings for distressed traders, bankruptcy declaration and liquidation cases, and representation of creditors in filing their claims and protecting their rights in the estate.
What we handle
- Restructuring applications for distressed businesses
- Protective composition and managing negotiation with creditors
- Bankruptcy declaration claims, for creditors and debtors alike
- Filing and pursuing creditors' claims in the bankrupt estate
- Liquidation and distribution of the bankrupt's assets and distribution disputes
- Preventive advice before distress and debt restructuring
What are your options when your business is in distress?
Bankruptcy is no longer the inevitable end for a distressed trader. The Bankruptcy Law, Royal Decree 53/2019, created graduated routes before any declaration: restructuring, which allows a financially troubled establishment to correct its position under a supervised plan, and protective composition, which lets a good-faith trader reach a binding arrangement with creditors that avoids a bankruptcy declaration.
Timing is the key: these routes must be applied for under defined conditions and deadlines, and delay can close them and expose the trader to harsher consequences. We assess your establishment's position realistically, recommend the right route, prepare the application with its financial and legal plan, and represent you in negotiation with creditors and before the court until the plan or composition is approved.
How is bankruptcy declared and what follows?
A trader who has ceased paying his commercial debts may be declared bankrupt in the circumstances and on the conditions set by the Bankruptcy Law, Royal Decree 53/2019, on the application of the debtor himself or of a creditor. Declaration carries substantial effects, including divesting the bankrupt of the management and disposal of his assets and the appointment of a trustee who administers the estate and inventories its assets and liabilities.
We represent debtors in these proceedings to protect their rights and legal position, and we equally represent creditors applying to declare a stalling debtor bankrupt, which can be the most effective lawful lever for recovery. In both cases we follow the estate's proceedings and hearings until closure.
How does a creditor protect his claim in the estate?
A creditor's right in the estate is not preserved automatically, but by filing a documented claim within the prescribed periods and having it admitted to the schedule of debts; otherwise the creditor risks losing his share of the distribution. We prepare and file the claim, contest fabricated debts that dilute yours, and challenge decisions rejecting the claim or admitting it below its value.
We monitor the liquidation and distribution to ensure the ranking of your debt is respected, whether preferred, secured, or ordinary. Above all, we advise creditor clients to move at the first signs of a debtor's distress, because in the queue of creditors, the late arrival finds the estate already distributed.
Frequently asked questions
What is the difference between restructuring, protective composition, and bankruptcy?
All three are routes under the Bankruptcy Law, Royal Decree 53/2019, matched to the degree of distress. Restructuring is an early correction of a troubled establishment under an approved plan; protective composition is a court-supervised arrangement between a distressed trader and his creditors that avoids a declaration; bankruptcy is declared upon cessation of payment and usually ends in liquidation. The choice of route and its timing change the outcome entirely, and we help you judge both.
My debtor has stopped paying. Should I apply to declare him bankrupt?
It may be, since the Bankruptcy Law allows a creditor to apply for the bankruptcy of a trader who has ceased paying his commercial debts, a lawful pressure that often brings the debtor to a serious settlement. But it is a weapon to weigh before use: after declaration, all debts compete and assets are distributed by ranking. We assess your position; an ordinary claim and execution may serve you better than the bankruptcy route.
Does protective composition stop claims against me?
The Bankruptcy Law, Royal Decree 53/2019, regulates the effect of opening protective composition proceedings on individual claims and execution measures against the debtor while the proceedings run, shielding the settlement under negotiation from a race between creditors. The scope and conditions of that protection are a precise legal question that varies with your case, and we set them out for you on the basis of your file before any step is taken.
How much does a bankruptcy lawyer cost in Muscat?
Fees depend on the route, the size of the debt, the number of creditors, and the file's complexity: a restructuring application, a protective composition, a bankruptcy claim, or representing you as a creditor in an existing estate. We start with a free first consultation by phone or WhatsApp on +968 9706 3030 to understand your financial and legal position, then give you a clear written fee proposal before work begins.
Your first consultation is free
Describe your matter on WhatsApp or by phone, and we will explain your legal position before any commitment.