Insolvency Law Toward Commercial Transactions in Jordan

Abstract

The study aims to explain the extent of the impact of the rules contained in the insolvency law on the Jordanian legal reality, and are they negative or positive effects? Our study also aims to explain the provisions of the insolvency law and its legal nature and explain what this law provides in terms of continuity of activity.  It is necessary to address the Jordanian reality based on loan contracts from banks and financial companies and checks and their impact on insolvency rules, and to what extent the commercial reality has been affected by the new provisions of the insolvency law, and the alternative solutions that can be applied to get rid of the negative effects of this law. The study used the descriptive and analytical approach to demonstrate the strengths and weaknesses of insolvency law in regulating commercial transactions that require speed and credit. The problem of the study arises in explaining the suitability of the new legal provisions that merged the insolvency and bankruptcy system with the legal reality in Jordan, such as imprisoning the debtor and creating new terms and conditions that may violate the guarantee of payment, as given. The legislator has many deadlines for payment, which has caused confusion in the commercial reality that depends on credit and does not give a deadline to the debtor.

Keywords: Insolvency, Commercial transactions, Bankruptcy, Jordan

DOI: 10.7176/JLPG/141-10

Publication date: April 30^th 2024