Bangkok:Today at the Parliament building, the Bankruptcy Act was unanimously passed, allowing civil servants and employees to declare bankruptcy without the need to resign from their positions.
According to Thai News Agency, Dr. Atthawich Suwannabhakdi, a member of parliament from the Ruam Thai Sang Chart Party, played a key role in advocating for this change. The small business rehabilitation law has been in effect since 2016, but in ten years, only ten cases were filed, with only two plans approved and none successfully completed. This led to a push for legal reform.
Dr. Atthawich proposed abolishing mandatory creditors' meetings and reducing the required creditor consent for debt restructuring from two-thirds to 50% of total debt. This aims to simplify the process for small borrowers. Additionally, the proposal allows civil servants and employees to maintain their employment during bankruptcy, similar to private sector employees.
The proposal was approved with 444 votes, marking the first law passed by the Ruam Thai Sang Chart Party in the current parliament session. The new legislation, known as the "New Bankruptcy and Debtor Rehabilitation Law," will now be submitted for royal assent and subsequent publication in the Royal Gazette to become law.