The Jurisprudential-Legal Validation of Non-Merchant Entry in Iran’s Bankruptcy law

Abstract

The generality of the bankruptcy law in the current legal system of Iran, in relation to the non-merchant debtor, has caused legal gaps in the support of creditor and debtor, and the lack of compatibility of this law with the Law of Indigency and Insolvency (Arabic: اَلْقانونُ الْإفْلاسُ وَ الْإِعْسارُ) has caused non-compliance of legal laws in the bankruptcy issue from jurisprudence. Explanation of the preferred aspects of the law of indigency, including public crediting to the debtor, observance of the principle of equality between debtors, preventing the escape of debt, and the enactment of laws appropriate to the fundamentals of jurisprudence and Islamic law will cause the expansion and promotion of commercial relations and will develop the economic and commercial system. A distinction, on the other hand, was created between the Bankruptcy and Law of Indigency and Insolvency by the enactment of the Financial Convictions Act 2015 which although it was done with the aim of clarifying the Commercial Code, but as a result of the implementation, faced problems, such as increasing claims of insolvency and the economic system disruption. Therefore, in this research, the revival of the Law of Indigency in the bankruptcy system of Iran has priority due to its inclusion and generalization towards the merchant and non-merchant and prevent disruption of the business system and economic order of the society, and will provide support to both merchant and non- merchant debtors.

Keywords

• bankruptcy law
• creditor
• debtor merchant
• debtor non-merchant debtor