Parliament Approves Bankruptcy Bill Protecting State Employee Status
Thailand's parliament unanimously approved a bankruptcy bill allowing civil servants to retain their government positions even if bankruptcy proceedings fail, though critics warned the protections create unfair disparities between different
Parliament unanimously approved the joint committee-amended bankruptcy bill on September 23, 2025, allowing bankrupt individuals to keep their civil servant status. Sophan Satharam, president of the House of Representatives, chaired the session to consider the Bankruptcy Act as revised by the joint parliamentary committee. The key provision confirms that civil servants who enter rehabilitation proceedings but fail to achieve success and are declared bankrupt by the court need not resign from government service, following the Senate's earlier removal of a contrary clause. The measure passed 444-0, with one abstention and one absent vote.
During parliamentary debate, Abhisit Vejjajiva, a Democrat Party list member and party leader, supported swift enactment to help financially distressed individuals recover and resume normal life. However, he flagged a concern: the amended provision grants bankruptcy protections only to those whose rehabilitation plans are court-approved, creating an inconsistency. Honest bankrupts in other cases or those whose plans are rejected receive no such protection, amounting to unfair discrimination.
Abhisit stressed that current constitutional and legal frameworks already restrict bankrupt persons from certain civil service roles deemed high-risk for state asset management. He urged the government to urgently pass a short bridging law of just 2-3 articles to harmonize dozens of existing laws on bankrupt civil servants' qualifications, ensuring equal and fair treatment for all honest bankrupts.
