Under current Thai law governing judgment enforcement and bankruptcy, creditors and the official receiver may only seize debtor assets located within Thailand — they have no authority to pursue assets held abroad.
The UNCITRAL Model Law on Cross-Border Insolvency provides an international framework for recognizing foreign insolvency proceedings. Currently, 41 countries have adopted this model law. In Asia, three countries — Japan, South Korea, and the Philippines — have implemented it, with Singapore also in the process of updating its legislation to enable cross-border asset recovery.
This limitation has eroded investor confidence in Thailand’s insolvency process. In today’s interconnected global economy, debtors frequently hold assets across multiple jurisdictions. When a debtor faces insolvency but creditors know assets exist abroad yet have no legal authority to seize them, it undermines trust in the system — discouraging both domestic and foreign investment.
Reform is needed. Thailand’s Bankruptcy Act (B.E. 2483 / 1940) has been in force for over 77 years. Although it has undergone some amendments, the core framework remains dated — and updating the law to address cross-border asset enforcement is long overdue.
Bankruptcy proceedings can be complex. Under Thai law, a creditor (or multiple creditors acting together) may file a bankruptcy petition if the debtor — an individual owing at least 1 million baht, or a juristic person owing at least 2 million baht — has a definite and ascertainable debt, whether due immediately or in the future.
Even after a bankruptcy petition is filed, the debtor still has options — including business rehabilitation and debt composition (both before and after a bankruptcy order) — allowing the debtor to negotiate with creditors and restructure debts to avoid full bankruptcy.
If restructuring fails, the case proceeds to formal bankruptcy. The official receiver takes control of the debtor’s assets for the benefit of all creditors. Other creditors must file their claims within the statutory deadline. Once declared bankrupt, the debtor loses all authority to manage their own assets — the official receiver assumes full control as required by law.
However, under the current framework, the official receiver may only collect assets located within Thailand — creating a significant obstacle in cross-border judgment enforcement cases.
