Cases that require annulment of the settlement by the Restructuring Law.. Know them

The Law Regulating Restructuring, Protective Composition, and Bankruptcy grants the court the right, upon the request of every creditor to whom the terms of the composition apply, to decide to annul the composition if the debtor fails to implement the terms of the composition as agreed upon, and if the debtor acts after ratifying the composition in a way that transfers ownership of his store without acceptable justification.

Likewise, if the debtor dies and all of the heirs and legatees do not submit, within three months from the date of death, a request to continue the reconciliation that is awaiting implementation or the completion of its implementation, the creditors are not obligated to return what they received of their debts before the ruling to annul the reconciliation, and the debtor is discharged to the extent that it has been paid, and no consequences arise. The guarantor who guarantees the implementation of its conditions must be absolved from the liability of the guarantor who guarantees the implementation of its conditions, and he must be assigned to attend the session in which the request to annull the settlement is considered.

If the court rules to invalidate or annul the settlement, it shall, on its own initiative, in the ruling itself, declare bankruptcy if its conditions are met. If it rules to invalidate or annul the settlement and this results in the debtor being declared bankrupt, the party providing the financing shall recover its rights to the extent of its financing before collecting the amounts due from criminal fines or taxes. Or fees or social insurance, after the creditors with real insurance have fulfilled their rights imposed on the debtor’s money. However, the party providing the financing may agree with them to grant it priority over them in repaying its debts.