Bankruptcy Proceedings In Oman

Although there is no separate bankruptcy law in Oman, both the Commercial Code of 1990 and the Commercial Companies Law of 1974 provide a framework for the bankruptcy of traders and liquidation of insolvent companies. Under the laws of Oman, bankruptcy of a person must be declared by the Court. Article 579 promulgates that, "Every merchant who faces difficulties in his financial activities and suspends payment of his commercial debts may be adjudicated as bankrupt. The suspension of payment of the debt shall prove the difficulties faced in the activities unless it is proven otherwise."

When an insolvent person declares bankruptcy, the interests of that person will cease to accrue on the debts. Upon the declaration of bankruptcy, debts should be settled in the following order of priority: