Educational Information Only
The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.
Preferential Payment to Creditors in Thailand
Making payments or transfers to certain creditors in preference over others when insolvent, disadvantaging other creditors.
Bankruptcy Act Sections 114-116
Imprisonment up to 3 years and/or fine up to THB 60,000; voidable transaction
moderate
Definition
Making payments or transfers to certain creditors in preference over others when insolvent, disadvantaging other creditors. Under Thai law, this offence is classified as a moderate offence within the category of Creditor Fraud.
Legal Basis
Bankruptcy Act Sections 114-116
Primary legislative provision for preferential payment to creditors offences.
Elements of the Offence
For a conviction, the prosecution must prove all of the following elements beyond reasonable doubt:
Debtor was insolvent or became insolvent
Payment or transfer to specific creditor
Intent to prefer that creditor
Made within 3 months before bankruptcy
Penalties
Maximum Penalty
Imprisonment up to 3 years and/or fine up to THB 60,000; voidable transaction
Actual sentences depend on factors including the severity of the conduct, harm caused, prior convictions, and mitigating circumstances. Courts have discretion to impose lesser sentences within the statutory range.
Possible Defences
The following defences may be available depending on the circumstances:
Payment in ordinary course of business
Creditor had no knowledge of insolvency
Secured creditor with prior valid security
Note: The availability of defences depends on specific facts. Professional legal advice is essential.
For Foreigners
Special Considerations for Foreign Nationals
Payments to foreign creditors or entities equally voidable. Official Receiver may pursue recovery internationally.
When Legal Representation Matters
If you are accused of preferential payment to creditors or facing investigation, immediate legal representation is essential to protect your rights and build an effective defence.
Anglo Siam Legal provides experienced legal services across Thailand for both Thai nationals and foreigners.
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