The Effects of the Bankruptcy Judgement on the Body of Creditors: A Comparative Study

Abstract

Abstract Bankruptcy laws play a crucial role in regulating commercial transactions, which are inherently based on trust and credit. This paper provides a comparative analysis of how bankruptcy affects the “creditor community” under the laws of Iraq, Egypt and Algeria, with reference to internationally recognized standards and best practices for effective bankruptcy frameworks. Modern bankruptcy laws seek to balance the diverse interests of debtors, creditors and broader economic and social objectives. This paper examines the three jurisdictions’ main legal effects of bankruptcy on the creditor community. It also highlights similarities and differences in how these laws address the rights and obligations of the creditor community, in line with international best practices, especially the World Bank’s Principles for Effective Bankruptcy and Creditor/Debtor Regimes, which sets out key criteria for effective bankruptcy laws. The results indicate that while the legal systems of Iraq, Egypt and Algeria have common foundations, there are subtle differences in their approaches to empowering creditors and aligning with international best practices. This article provides insights for policymakers and scholars seeking to enhance the effectiveness and balance of bankruptcy systems, enhance commercial transactions, protect creditor rights and promote sustainable economic development.

Keywords

• Bankruptcy
• body of creditors
• collective procedures
• bankruptcy trustee
• bankruptcy international standards