Latest news with #Decree-LawNo.38
Zawya
24-04-2025
- Business
- Zawya
Kuwait: Banks cannot deduct full salaries of debtors
KUWAIT CITY - The Head of the General Administration of Execution, Counselor Abdullah Al-Othman, has affirmed that banks are not permitted to recover debts from the debtor's entire salary. In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department. Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.' He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
Arab Times
23-04-2025
- Business
- Arab Times
Banks cannot Deduct Full Salaries of Debtors
KUWAIT CITY, April 23: The Head of the General Administration of Execution, Counselor Abdullah Al-Othman, has affirmed that banks are not permitted to recover debts from the debtor's entire salary. In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department. Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.' He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
Zawya
02-04-2025
- Business
- Zawya
Debtor imprisonment reinstated under Kuwait's Bankruptcy Law
KUWAIT CITY - Decree-Law No. 58/2025 amended Article 5 of Bankruptcy Law No. 71/2020 on 'Arrest Orders, Subpoenas, and Detention of Debtors,' outlining the controls to be incorporated into the amended Civil and Commercial Procedures Law, reports Al-Seyassah daily. Article 1 of the decree, which was published in the official gazette Kuwait Al-youm, specifies that the phrase regarding the nullification of 'Articles 292, clauses one, two, and four of Articles 293, 294, 295, and 296 of Decree- Law No. 38/1980,' included in Article 5 of Law No. 71/2020, shall be deleted. The explanatory memorandum states the following: Article 5 of Bankruptcy Law No. 71/2020 repealed Articles 292, clauses one, two, and four of Articles 293, 294, 295, and 296 of Decree- Law No. 38/1980, which governs the Civil and Commercial Procedures Law, leading to the lapse of all arrest warrants and the imprisonment of debtors. It was then decided to reinstate the debtor imprisonment system with the controls to be included in the Civil and Commercial Procedures Law. This necessitates an amendment to the text of Article 5 of Law No. 71/2020. This amendment is considered one of the most important measures creditors use to compel debtors to pay. Furthermore, following the issuance of the Amiri Order on 5/10/2024, which stipulated in Article 4 that laws shall be issued by decrees with the force of laws, the draft bankruptcy decree-law was prepared. Its first article mandates the deletion of the phrase that cancels the articles from the aforementioned Civil and Commercial Procedures Law. Article Two requires the ministers, each in their capacity, to implement this decree-law, effective from the date of its publication in the official gazette. Meanwhile, the official gazette Kuwait Al-youm also published Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law. These amendments aim to strengthen pressure mechanisms to encourage solvent debtors to repay their debts, eliminate obstacles to debt settlement wherever possible, and take into consideration the circumstances of insolvent debtors.
Arab Times
01-04-2025
- Business
- Arab Times
Debtor imprisonment reinstated under Kuwait's Bankruptcy Law
KUWAIT CITY, April 1: Decree-Law No. 58/2025 amended Article 5 of Bankruptcy Law No. 71/2020 on 'Arrest Orders, Subpoenas, and Detention of Debtors,' outlining the controls to be incorporated into the amended Civil and Commercial Procedures Law, reports Al-Seyassah daily. Article 1 of the decree, which was published in the official gazette Kuwait Al-youm, specifies that the phrase regarding the nullification of 'Articles 292, clauses one, two, and four of Articles 293, 294, 295, and 296 of Decree- Law No. 38/1980,' included in Article 5 of Law No. 71/2020, shall be deleted. The explanatory memorandum states the following: Article 5 of Bankruptcy Law No. 71/2020 repealed Articles 292, clauses one, two, and four of Articles 293, 294, 295, and 296 of Decree- Law No. 38/1980, which governs the Civil and Commercial Procedures Law, leading to the lapse of all arrest warrants and the imprisonment of debtors. It was then decided to reinstate the debtor imprisonment system with the controls to be included in the Civil and Commercial Procedures Law. This necessitates an amendment to the text of Article 5 of Law No. 71/2020. This amendment is considered one of the most important measures creditors use to compel debtors to pay. Furthermore, following the issuance of the Amiri Order on 5/10/2024, which stipulated in Article 4 that laws shall be issued by decrees with the force of laws, the draft bankruptcy decree-law was prepared. Its first article mandates the deletion of the phrase that cancels the articles from the aforementioned Civil and Commercial Procedures Law. Article Two requires the ministers, each in their capacity, to implement this decree-law, effective from the date of its publication in the official gazette. Meanwhile, the official gazette Kuwait Al-youm also published Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law. These amendments aim to strengthen pressure mechanisms to encourage solvent debtors to repay their debts, eliminate obstacles to debt settlement wherever possible, and take into consideration the circumstances of insolvent debtors.
