List of the best lawyers in Dhaka, Bangladesh
Bankruptcy & Debt Law in Dhaka, Bangladesh:
Bankruptcy and debt regulations in Dhaka, Bangladesh establish the legal structure for individuals and companies struggling with financial distress. These laws are designed to support debtors in reorganizing, settling, or eliminating their financial obligations, while also protecting the legal rights of creditors. In Dhaka, bankruptcy and debt issues are mainly regulated under the Bankruptcy Act of 1997 and the Companies Act of 1994, which outline the procedures for debt resolution and insolvency management.
Why You May Need a Lawyer :
There are several circumstances in Dhaka where consulting a bankruptcy and debt lawyer becomes essential. Individuals and businesses often seek legal support for matters such as:
Initiating personal or corporate bankruptcy filings
Negotiating debt restructuring plans or settlement agreements with creditors
Responding to lawsuits related to unpaid debts
Getting clarity on available legal protections and debtor rights
Addressing aggressive or unlawful collection practices by creditors
Local Laws Overview :
When dealing with bankruptcy and debt issues in Dhaka, several core legal principles shape how cases are handled:
- Bankruptcy Act 1997 – This law sets out the full process for personal and business bankruptcy in Bangladesh, including debtor rehabilitation, voluntary settlements, liquidation procedures, and asset distribution. It outlines the rights and responsibilities of both debtors and creditors.
- Companies Act 1994 – This statute governs insolvency and winding-up procedures for companies operating in Dhaka. It provides mechanisms for resolving corporate financial distress while safeguarding the interests of creditors, shareholders, and other stakeholders.
- Insolvency and Bankruptcy Rules 2019 – These rules offer detailed guidance on how bankruptcy and insolvency proceedings should be conducted, ensuring clarity and consistency across filings, hearings, and administrative processes.
Bangladesh Bankruptcy & Debt Law :
In Bangladesh, bankruptcy and debt recovery are governed by a structured legal framework centered on the Bankruptcy Act, 1997, which allows creditors and debtors to initiate insolvency proceedings. The law defines “acts of bankruptcy,” sets procedures for adjudication, and mandates how a debtor’s assets should be realised and distributed. Its purpose is to ensure a fair and orderly settlement of debts while protecting both the interests of creditors and the legal rights of the insolvent party. online.ibb.org.bd Business Post
Act of Bankruptcy: A debtor may be declared bankrupt if they commit defined acts such as fraudulent transfer of property or failure to comply with a formal demand. Resource Portal Scribd
Creditor-Driven Proceedings: Eligible creditors (with a certain debt threshold) can file a petition for bankruptcy in court. Resource Portal
Court-Supervised Liquidation: Once declared bankrupt, a receiver takes control of the debtor’s assets, which are then liquidated to repay creditors in a legally defined order. learningportal.ibb.org.bd
Disqualifications: An undischarged bankrupt faces restrictions, such as inability to act as a company director, and may have ongoing reporting obligations. ICAB
Limitations on Relief: Certain debts (e.g., those incurred by fraud) may not be discharged through bankruptcy. Resource Portal
Frequently Asked Questions :
Q1: How does the bankruptcy process work in Dhaka, Bangladesh?
A. Bankruptcy in Dhaka starts with filing a petition before the appropriate court. Once accepted, a court-appointed trustee takes control of reviewing the debtor’s assets and liabilities, negotiating with creditors, and managing how the available assets will be distributed according to legal procedures.
Q2: Can I retain any assets after filing for bankruptcy in Dhaka?
A: Yes. Although most assets may be liquidated to pay creditors, Bangladeshi bankruptcy laws allow certain exemptions. Debtors may keep essential items such as basic residential property, necessary tools for livelihood, and specific personal belongings.
Q3: What is debt restructuring and how does it work in Dhaka?
A: Debt restructuring enables debtors to revise repayment terms with creditors. This can include extending deadlines, lowering interest rates, or reducing the payable amount. Once a restructuring plan is approved, the debtor can continue managing their personal finances or operating their business while meeting adjusted repayment obligations.
Q4: How long do bankruptcy proceedings usually take in Dhaka, Bangladesh?
A: The timeframe varies depending on the complexity of the financial situation and cooperation between parties. Bankruptcy cases in Dhaka can take anywhere from several months to a few years to fully resolve.
Q5: Will filing for bankruptcy affect my credit score in Bangladesh?
A: Yes. Declaring bankruptcy negatively affects your credit rating and may limit your ability to secure loans in the short term. However, consistent financial discipline and responsible money management can gradually help rebuild your credit profile over time.
Additional Resources:
For more detailed guidance and support related to bankruptcy, insolvency, and debt management in Dhaka, you may find the following resources helpful:
Bangladesh Bank (Central Bank): The country’s central bank provides essential information on financial regulations, monetary policies, and guidelines affecting debt management and insolvency procedures.
Dhaka Bar Association: This local legal body can help you connect with qualified bankruptcy and debt lawyers who specialize in insolvency, restructuring, and debt recovery cases in Dhaka.
Ministry of Commerce: The Ministry offers resources related to company registration, winding-up procedures, insolvency policies, and commercial regulations relevant to individuals and businesses facing financial distress.
Additional Resources:
If you need legal support for bankruptcy or debt-related matters in Dhaka, Bangladesh, consulting an experienced bankruptcy and debt lawyer is essential. A qualified lawyer can assess your financial situation, provide personalized legal advice, and guide you through the necessary processes to protect your rights and make informed decisions.
Finding the Right Lawyer in Dhaka
Ukilbd connects you with top-rated lawyers and law firms in Dhaka through a curated, pre-screened list of legal professionals. The platform allows you to compare firms and attorneys based on practice areas, including Bankruptcy & Debt, experience, and client feedback. Each profile provides detailed information about the firm’s practice areas, team members, years of experience, languages spoken, office locations, contact details, social media presence, and published articles or resources. Most firms listed speak English and have expertise in both domestic and international legal matters. You can request quotes from leading law firms in Dhaka quickly, securely, and without unnecessary hassle.
Disclaimer:
The content on this page is intended for general informational use and should not be considered legal advice. Although we make every effort to provide accurate and up-to-date information, laws and regulations can change, and interpretations may differ based on individual circumstances. For guidance tailored to your specific situation, you should consult a qualified legal professional. We assume no responsibility for any actions taken or omitted based on the material provided here. If you notice any inaccuracies or outdated references, please contact us so we can review and update the information as needed.
