The State of Kuwait issued its major legislative reform to Law No. 38 of 1980 promulgating the Civil and Commercial Procedures Law (the “Procedural Law”) under Decree-Law No. 59 of 2025 (the “Decree Law“), introducing new enforcement mechanisms and amending existing articles to enhance the efficiency of judicial execution and the protection of creditors’ rights.

The Decree Law introduced the following articles:

1.Enforcement Measures Available Against a Defaulting Debtor:

If a debtor fails to fulfill their obligation towards the creditor after being duly notified, the Director of the Execution Department or any assisting judge may, upon the creditor’s request, take any of the following measures:

1. Request a report detailing the debtor’s assets held by government entities, including real estate, movable property, usufruct rights, or any other present or future financial rights.

2. Request a report of the debtor’s assets held by banks, investment companies, clearing agencies, or others, including any existing or future funds or rights owed by third parties.
   In both cases, the Director of the Execution Department or the assisting judge may authorize the extraction of a statement detailing the transactions conducted on these assets, including the name of the transferee, for a period prior to the issuance of the writ of execution, provided such period does not extend beyond the date the debt arose.
3. Impose a travel ban, detention, or both on the debtor, in accordance with the provisions set forth in the Procedural Law.

   Additionally, the Director of the Execution Department or any assisting judge may, without a request from the creditor, take any of the following actions:

1. Notify the credit information company of the default for registration in the debtor’s credit report, in accordance with the provisions of Law No. 9 of 2019 promulgating the Exchange of Credit Information.
2. Appoint a qualified expert from the General Department of Experts should the execution procedures warrant such appointment.
3. Take any other measures prescribed by law.

2.Authority to Suspend Dealings on Assets Transferred by the Debtor:

If the debtor disposes of their property without consideration, or for a price or value significantly lower than its prevailing market value, after the date the debt arose, the Director of the Execution Department or any assisting judge may, upon the creditor’s request, order the suspension of dealings with such property if it remains in the possession of the transferee. The creditor shall notify both the debtor and the transferee of the order through judicial notice, in accordance with the provisions of the Procedural Law.

If the transferee, after being duly notified, fails to comply with the order, a judgment may be rendered against the transferee in favor of the creditor for the debt being enforced, provided that such liability shall be limited to the market value of the property at the time of its transfer.

The creditor must, within one week from the day following the issuance of the order, file a claim seeking the annulment of the transaction pursuant to the provisions of Law No. 67 of 1980 promulgating the Civil Code, naming both the debtor and the transferee as defendants. The competent court hearing the case shall have the authority to, upon the transferee’s request, suspend the enforcement order at any stage of the proceedings until a final judgment is issued on the merits.

The suspension order shall be deemed void if the creditor fails to file the claim within the prescribed period, or if the claim is dismissed, struck out, deemed void, abated, discontinued, or extinguished.

(Article 204 (bis A).)

3.Detention of a Debtor Despite the Ability to Pay:

The Director of the Execution Department or any assisting judge shall, upon a petition submitted by a creditor holding a final judgment, final order for payment, or final order on petition, issue an order for the arrest and detention of the debtor for a period not exceeding six months if the debtor refrains from executing the final judgment or order, despite the proven ability to fulfill the obligation.

The issuing authority shall determine the duration of the detention and specify whether it is to be served in one continuous period or in installments.                                                                                               

The debtor may not plead inability to pay under any of the instruments referred to in the first paragraph if they have disposed of or concealed their assets with the intent to cause harm the creditor, thereby making it impossible to enforce against such assets.

(Article 292)

4.Civil Detention Excludes Release from Debt Obligations:

The detention shall be carried out in segregation from inmates held in criminal cases, and the prison administration, in coordination with the Execution Department, shall provide the means necessary to enable the debtor to settle or repay their debts. The execution of the detention order shall not result in the extinguishment of the underlying debt, nor shall it prevent the creditor from pursuing compulsory enforcement by any means permitted under the Procedural Law.

(Article 293)

5. Grounds for Prohibiting a Detention Order Against the Debtor:

A detention order shall not be issued against the debtor in the following circumstances:

1. If the debtor is under twenty-one (21) years of age or over sixty-five (65) years of age.

2. If the debtor has children under the age of eighteen (18), and their spouse is deceased or detained for any reason. If a request is submitted and the detention order is denied based on these grounds in execution of a judgment or order, such impediment shall not preclude the issuance of a detention order under another judgment or order.

3. If the debtor is the spouse, ascendant, or descendant of the creditor, unless the debt is an alimony claim.

4. If the debtor has already served the maximum detention period set by a previous order in relation to the same debt.

5. If the debtor provides an adequate bank guarantee, or a real guarantor who offers assets equivalent to the value of the debt, or a solvent guarantor accepted by the competent authority issuing the order. The report including the guarantor’s undertaking shall constitute a writ of execution against the guarantor for the obligations arising from their guarantee. The Execution Department may seek the assistance of experts from the General Department of Experts or financial valuation experts to assess the value and sufficiency of the proposed assets. The Execution Department shall determine the experts’ fees as it deems appropriate, to be paid from the Ministry of Justice’s funds and recorded as a debt against the debtor. The said Ministry shall have a statutory lien in recovering such amounts.

6. If it is proven by a medical report that the debtor is suffering from an illness that cannot withstand detention, or if the debtor is a pregnant woman. The Execution Department may, for this purpose, seek the opinion of any competent medical authority, and may also refer the debtor to any such authority for examination.

7. If the debtor’s financial capacity is entirely based on assets that are exempt from attachment.

(Article 294)

6. Consequences of Non-Compliance by a Legal Entity:

If the debtor is a private legal entity, the detention order shall be issued against the individual responsible for the non-compliance with the execution.

(Article 295)

7. Grounds for the Revocation of the Detention Order:

The detention order issued against the debtor shall be revoked in the following cases:

1. If the creditor provides written consent to waive the order.
2. If, for any reason, the debtor’s obligation for which the detention order was issued is extinguished.
3. If any of the conditions required for issuing the detention order cease to exist, or if any impediment to its issuance arises.

(Article 296)

Further to the aforementioned enacted provisions, the Decree Law introduced amendments to the following five articles of the Procedural Law:

• Article 214

The Decree Law expands the conditions under which execution may resume. The previous article was limited to cases where the objection was dismissed under Article 59 (due to absence of parties or failure to submit memoranda). The Decree Law now includes cases where the objection is stayed under Article 70, which allows the court to suspend proceedings pending the outcome of a related matter. It also increases the fine for unsuccessful objections from 10 to 100 Kuwaiti Dinars to a new range of 50 to 300 Kuwaiti Dinars, while maintaining the possibility of awarding compensation. The amendment aims to deter misuse of objections and promote more efficient and reliable enforcement of judgments.

• Article 227 (Second Paragraph)

The previous article stipulates that, if an attachment is not imposed on a specific movable property or debt, it shall cover all movables or debts belonging to the debtor in the possession of the garnishee, whether existing or arising, up to the time of the declaration of what is owed. The Decree Law, however, imposed an obligation on the garnishee, as they are now required to submit an additional declaration regarding any new funds or credit balances added to the debtor’s account after the initial report, unless the seizure is lifted by the Execution Department. This enhances creditor protection and reduces the debtor’s ability to evade enforcement.

• Article 230 (Clause E)

The previous article merely required the garnishee to submit a report on what the debtor owes to the Court Registry within ten days of being notified of the attachment, the Decree Law redirects this obligation to the relevant Execution Department and further requires the garnishee to disclose any new funds or credits added to the debtor’s account after the attachment, unless the attachment is lifted. This enhances the effectiveness of the attachment, ensures ongoing monitoring of the debtor’s financial status in favor of the creditor, and expands the garnishee’s responsibility to prevent the concealment of assets after the attachment is imposed.

• Article 234 (Paragraphs 1 & 2)

The previous article required the garnishee to submit a report of what the debtor owes to the Court Registry within ten days of being notified of the attachment, detailing the amount of the debt, its cause, and any existing attachments. This also applied to government entities and banks, which would send their reports in writing to the same registry. The Decree Law, however, shifts this obligation to the Execution Department, while maintaining the same requirements regarding the report’s content. This amendment aligns with Article (230) and serves to enhance the speed and efficiency of judicial enforcement while minimizing administrative overlap between judicial bodies.

• Article 293
  Whereas the previous article provided that the detention request be submitted to the Execution Department accompanied by a copy of the writ of execution and its notification, it authorized the competent judge, prior to issuing the detention order, to conduct a summary investigation should the supporting documents be insufficient. The judge was also permitted to grant the debtor a grace period for payment not exceeding one month, and, upon the creditor’s approval, to order payment by installments if it was established that the debtor was unable to pay the full amount. The installment order would be deemed null and void if the debtor failed to pay any installment by its due date.

The Decree Law, however, while maintaining the same general provisions, stipulates that the detention request shall be submitted to the Director of the Execution Department or to an assisting judge. Furthermore, it empowers the judge to request additional documentation from governmental and non-governmental entities if the documents submitted are insufficient, thereby enhancing the objectivity of the decision-making process. It also retains the possibility of granting a grace period not exceeding one month and permits installment arrangements with the creditor’s consent. However, the debtor must demonstrate a “partial repayment capacity,” meaning the judge must be satisfied not only that the debtor is unable to pay the debt in full, but also that the debtor has the means to pay in installments.

Conclusion

The Decree law is crucial, as the high rate of civil and commercial debts does not only affect creditors but also affects the country’s economic environment and its ability to attract foreign investment. Therefore, it has been deemed necessary to amend the Procedural Law to strengthen enforcement measures that pressure solvent debtors to fulfill their payment obligations.

 

Authors: Mohammed Al Awadhi, Legal Director and Maha Abdullah, Trainee Lawyer.