Developing enforcement processes to ensure justice for the public.

"The Department of Legal Execution is committed to developing the legal execution process, focusing on improving operations, enhancing the capabilities of personnel, and proactively serving the public to ensure justice for citizens. The goal is to provide citizens and stakeholders with convenient, swift, transparent, and fair access to information and services related to legal execution, mediation, and asset seizure."

In the Thai justice system. "Department of Legal Execution" The Department of Legal Execution plays a crucial role, with its mission to provide efficient, swift, equitable, fair, and transparent services in civil enforcement, bankruptcy cases, debtor rehabilitation, and post-judgment mediation.

Seksan Suksang Director-General of the Department of Enforcementee Give a special interview bank finance The Department of Legal Execution is ready to be a key economic mechanism by generating income, reducing expenses, resolving debt problems, and increasing liquidity for the public in 2569.

This will also enhance public knowledge and understanding of the organization's operations, while accelerating the improvement of case management and services by reducing procedures and processing times, thereby promoting justice, reducing social inequality, and strengthening the country's competitiveness.

"The Department of Legal Execution is committed to developing the legal execution process, focusing on improving operations, enhancing the capabilities of personnel, and proactively serving the public to ensure justice for citizens. The goal is to provide citizens and stakeholders with convenient, swift, transparent, and fair access to information and services related to legal execution, mediation, and asset seizure."

Moving forward with the mediation mission.
Resolving the country's 16 trillion baht in bad debt.

Seksan stated that, in order to move towards the goal of providing the public and stakeholders with convenient, rapid, transparent, and fair access to information and services related to enforcement, mediation, and asset seizure by 2569, the Department of Legal Execution has the following key operational plans:

 The dimension of providing assistance. Currently, the total value of non-performing loans in civil cases entered into the Department of Legal Execution is as high as 16 trillion baht. This figure is almost equal to the country's GDP of 18 trillion baht. Of this 16 trillion baht, the Department of Legal Execution has already seized assets in over 700,000 cases, with real estate valued at 200,000 billion baht.

"It is evident that this is a massive debt with significant implications for the economic system. When the Department of Legal Execution seizes and auctions off assets, the proceeds return to the financial system. In one year, the Department of Legal Execution auctions and repays almost 30 billion baht."

Currently, the economic situation presents challenges in conducting auctions. The Department of Legal Execution has therefore introduced a guideline allowing buyers of auctioned properties to obtain loans from financial institutions. However, financial institutions often refuse to grant loans, resulting in most properties being repurchased by the creditor banks themselves, using a debt-deduction mechanism. The Department of Legal Execution is therefore working to improve the efficiency of removing assets from enforcement proceedings to support the country's economic growth.

"The Department of Legal Execution will expedite the process of removing assets from enforcement proceedings through auctions. This aims to boost the country's economic growth, ensuring that judgment creditors receive payment and debtors are able to repay their debts. It reduces the burden of accrued interest, resulting in the circulation of assets back into the economic system, and ultimately decreasing the number of cases in the enforcement stage."

Seksan stated that, in addition, the Department of Legal Execution focuses on mediating disputes to resolve problems for debtors before the asset seizure and auction stage. There are 117 dispute mediation centers nationwide that conduct mediation after the court has issued a judgment, both before and during the enforcement process. The Department of Legal Execution collaborates with both government and private sector agencies to continuously manage dispute mediation, prioritizing assistance and resolving the hardships faced by the public.

“Over the past two to three years, we have been proactively working to provide opportunities for debtors to negotiate and restructure their debts. We have brought financial institutions into the negotiations with debtors, each offering promotions such as reduced debt amounts or lower monthly payments. This has been done through nationwide dispute resolution events, which have been very helpful to debtors.”

The prevention dimension involves enhancing knowledge. With a focus on raising public awareness and understanding of the agency's operations, awareness-building efforts are implemented through four key projects:

1. 1. The Execution-Free Area Project for 2569 aims to disseminate and enhance knowledge and understanding of the Department of Legal Execution's mission and general laws in daily life to the general public and vulnerable groups, in collaboration with various networks and teams in the target areas.
   2. The project aims to enhance legal knowledge on enforcement and financial discipline by providing preventative education on the mission of the Department of Legal Execution, civil enforcement law, dispute resolution in enforcement proceedings, and financial discipline to students, student loan fund borrowers, and other interested individuals. The goal is to provide them with accurate legal knowledge that can be applied in their daily lives, thereby fostering positive relationships and attitudes within the Department of Legal Execution.
   3. The project to strengthen small and medium-sized enterprises (SMEs) aims to enhance public knowledge about the Bankruptcy Act, specifically regarding the rehabilitation of SMEs, rehabilitation plans, and the procedures involved in SME rehabilitation.

The dimension of administering justice. This involves accelerating the improvement of case management and services by reducing procedures and processing times, along with adhering to the standards set forth in the Justice System Act B.E. 2565 (2022), in order to facilitate justice, reduce social inequality, and enhance the country's competitiveness.

Amend the law on personal bankruptcy.
Those with debts exceeding 1 baht can apply for business rehabilitation.

Seksan stated that, in addition to its three-dimensional mission, the Department of Legal Execution also prioritizes the business rehabilitation process to enable potentially viable debtors to continue their businesses and repay debts without going bankrupt.

The Department of Legal Execution plays a direct role in supervising debtors who enter into business rehabilitation proceedings in accordance with the Bankruptcy Act of 2483, which added the business rehabilitation process as Section 3/1 in 2541 for large businesses, limited companies, public limited companies, or other legal entities as specified in the ministerial regulations, that are experiencing financial liquidity problems, are insolvent, or are unable to pay debts as scheduled.

The business rehabilitation process focuses on preserving the business viability of debtors who have not yet gone bankrupt, have debts of 10 million baht or more, and lack liquidity. These debtors can request rehabilitation. The key aspect is that once the court approves the rehabilitation process, an Automatic Stay mechanism, or debt moratorium, will immediately halt all litigation and enforcement proceedings, giving the debtor an opportunity to secure new funding to repay the debt.

Seksan further stated that, in order to address the debt problem more comprehensively, especially debts below 10 million baht, the Department of Legal Execution is also pushing forward a draft of the Bankruptcy Act (Amendment No. ...) B.E. ... (Procedures concerning the rehabilitation of debtors) or the rehabilitation process for individuals.

This draft law amends the Bankruptcy Act to expand the scope of business rehabilitation, which was previously limited to legal entities or large companies, to include individuals with debts of 100,000 baht or more. These individuals would be able to file for business rehabilitation to avoid unnecessary bankruptcy proceedings.

The reason for amending the law is that, in the past, the Business Rehabilitation Act has not been very successful because it required approval from creditors. In most cases, debtors' debt repayment plans were not approved. This amendment will simplify this process, allowing individuals to submit a plan to the court directly without creditor consent. Once the court approves the plan, the rehabilitation process can begin immediately.

When the court approves an individual debtor to enter into business rehabilitation proceedings, it must follow the same process as the rehabilitation of large businesses, which involves an Automatic Stay or debt moratorium. This immediately halts all litigation and enforcement proceedings. Debtors can consolidate debts from multiple financial institutions under a single rehabilitation plan, which will help address Thailand's large volume of informal and household debt.

The bill had already passed the House of Representatives and was under consideration by the Senate's ad hoc committee. However, due to the dissolution of the House of Representatives on December 12, 2568, the bill, which was still under consideration by the Senate's ad hoc committee, was dropped in accordance with Section 147 of the Constitution of the Kingdom of Thailand.

"The new draft law on business rehabilitation for individuals will be crucial in resolving the country's massive household debt problem. I believe that if a new government is formed, this draft law will definitely pass because it is a key solution to the country's economic problems."

Study and use technology-AI
Assist in the seizure process.

Seksan stated that, under personnel limitations—with 1,200 civil servants handling a massive number of cases—the Department of Legal Execution has been utilizing technology for the past 10 years. The department has developed an e-Service system accessible through its website, www.led.go.th, and the LED e-Service mobile application (available for both iOS and Android) to provide services to the public. This aims to facilitate processes, reduce procedures and costs, and enhance transparency in several key areas, including:

1. 1. The civil case status monitoring system allows interested parties to check information in real-time as it unfolds according to the officials' work schedule, without having to travel to the Department of Legal Execution to request access to case files or information.
   2. The system for checking bankruptcy information is open to all citizens, and government agencies, private companies, and state enterprises can request data access via API service.
   3. The electronic application system covers civil cases, bankruptcy cases, asset seizure cases, debtor rehabilitation cases, and online payments, eliminating the need to physically submit applications at the Department of Legal Execution. Stakeholders can submit applications through the system, receive relevant documents such as receipts and reports, and track the case status online.
   4. The public auction notice system displays properties currently under auction, including civil and bankruptcy cases, from all agencies under the Department of Legal Execution nationwide, allowing interested buyers to inspect and search for properties.
   5. The live auction system broadcasts real-time footage from over 52 auction houses under the Department of Legal Execution nationwide, ensuring transparency and allowing the public to view the auctions.
   6. The official receiver notification system allows the public to electronically check information regarding orders and notices issued by the official receiver in bankruptcy cases.
   7. The system for applying for registration as a plan administrator/plan manager allows those wishing to become plan administrators/plan managers to submit registration applications and renew their registrations electronically.

Furthermore, the Department of Legal Execution is currently studying the working principles of AI, specifically Workflow Automation, for application in the automated seizure process. The concept behind this process is that the interested parties have already submitted their requests.

"This AI system will be able to handle asset seizure enforcement, notify all relevant parties, and maintain records of income and expenses throughout the entire process. Currently, a working group is being appointed to improve the processes and related laws to ensure efficient operation."

Follow and read other columns in the February 2569 Bank Finance Journal, Issue 526, in digital format: https://goo.gl/U6OnIi

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