A COMPARATIVE STUDY OF ENTERPRISE REHABILITATION PRINCIPLES UNDER THE ENTERPRISE REHABILITATION AND BANKRUPTCY LAWS OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC: A CASE STUDY OF THE APPLICATION OF THE AUTOMATIC STAY PRINCIPLE UNDER THE BANKRUPTCY ACT OF 1940 IN THAILAND

Abstract

This research article aims to study the legal principles of automatic stay under the Bankruptcy Act of 1940 in Thailand, with the following objectives:    1. To analyze the principles and mechanisms of automatic stay under Thailand's Bankruptcy Act B.E. 2483, including legal provisions, scope of legal effects, and practical issues. 2. To study the principles of suspension of proceedings and protection of debtors in the business rehabilitation process under the Law on Rehabilitation and Bankruptcy of Enterprises in Laos. 3. To compare the advantages, limitations, and suitability of the Automatic Stay principle in the Thai and Lao legal systems, in terms of legal structure, enforcement mechanisms, and economic context. 4. To suggest ways to modernize the laws of both countries to be consistent with international standards and to effectively and fairly support the recovery of enterprises. Using qualitative research,The study found that while Thailand's bankruptcy law provides a degree of protection for debtors, it lacks clarity in its scope and enforcement, particularly regarding secured creditors and government creditors. While the Lao PDR's Law on Enterprise Rehabilitation and Bankruptcy contains limited provisions focused solely on dispute resolution, it lacks clear mechanisms for suspending interest payments or judicial oversight. Therefore, the recommendation of this research is to reform the laws in both countries to expand the scope of Automatic Stay, including legal provisions in pre-insolvency processes, and to strengthen the capacity of legal institutions so that such laws in both countries align with developing international standards and further enhance the effectiveness of business rehabilitation laws.