What is Bankruptcy?
Bankruptcy is a legal status where a person or business is unable to pay off debts, and the court declares them bankrupt. Once declared, an official receiver manages the debtor’s assets on behalf of the creditors.

Filing for Bankruptcy
A creditor whose debtor has defaulted on payments may file a bankruptcy petition with the court, provided the debt meets the legal threshold (e.g., at least 1 million baht for an individual debtor).

Debt Rehabilitation (Composition)
The debtor may submit a petition for debt rehabilitation before or after a bankruptcy case is filed, proposing an installment repayment plan. If most creditors agree, the court may approve the plan instead of declaring bankruptcy.

Discharge from Bankruptcy
A bankrupt individual can apply for a discharge after three years (or 5–10 years in certain conditions). A petition must be submitted to the court with documents showing good behavior and debt resolution efforts.