TIMEP Brief: Bankruptcy Law

Source: The Tahrir Institute for Middle East Policy

Author(s): TIMEP

Original Link: https://timep.org/reports-briefings/egypts-bankruptcy-law/

The Bankruptcy Law eliminates prison sentences for individuals who declare bankruptcy, except in cases of fraudulent behavior, though it increases the penalties for those individuals convicted of bankruptcy fraud. The law also creates mechanisms that decrease the need for individuals and companies to resort to the court system in cases of bankruptcy. The law regulates the financial and administrative restructuring of troubled or stalled projects in an attempt to remove them from faltering and put them back into the market. Per the law, project restructuring plans must be completed within 60 days of filing and judges are given the discretion to extend that deadline. The Bankruptcy Law also reduces the liquidation timeline for businesses from about two years to nine months.

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