The Role of the Judge and Judicial Discretion, Overlook Movable Assets
Sharif Almadani
Legal Consultant at The Law Firm of Hazim Al Madani - Attorneys & Legal Consultants
In the realm of legal enforcement, particularly under the Saudi Enforcement Law, Article 35 is a critical tool for creditors seeking to recover debts. This article grants the enforcement judge the authority to seize and liquidate the debtor’s assets to satisfy outstanding obligations. Despite its potential, it’s surprising how often creditors fail to fully utilize this provision, particularly when it comes to movable assets.
The Overlooked Opportunity
Movable assets, unlike immovable assets such as real estate, can be difficult to track and are often underestimated in terms of their value and potential for debt recovery. This might include vehicles, machinery, inventory, or even valuable personal belongings. Article 35 allows creditors to request the seizure of these assets if they know their location, yet many choose to wait passively for funds to appear in the debtor’s bank account—a strategy that is not only inefficient but often unproductive.
Why Is This a Mistake?
领英推荐
The Role of the Judge and Judicial Discretion
While the law provides a clear path for asset seizure, it’s important to recognize the role of judicial discretion in these cases. Some judges may be reluctant to lift enforcement actions, especially if they suspect the debtor is attempting to evade repayment by disposing of or concealing assets. This highlights the importance of a proactive approach in enforcement actions, ensuring that all available assets are identified and targeted from the outset.
Strategic Takeaways
For creditors and their legal representatives, the message is clear: Do not wait passively for funds to be available in a debtor’s bank account. If you know where movable assets are located, act immediately to secure those assets through the mechanisms provided by Article 35. This proactive approach not only enhances the likelihood of debt recovery but also ensures that the debtor cannot easily escape their financial obligations.
Conclusion
Article 35 of the Saudi Enforcement Law offers a robust framework for debt recovery, but its effectiveness depends on how it is utilized. By focusing on movable assets and leveraging the full scope of the law, creditors can maximize their chances of successful recovery. Don’t leave money on the table—ensure that every possible asset is considered in your enforcement strategy.
#SaudiLaw #EnforcementLaw #DebtRecovery #LegalStrategy #MovableAssets #Article35 #SharifAlMadani_Lawyer