The termination of bankruptcy by barter

Abstract

The economic developments led to the complexity of life, so individuals began to search for resources that would enable them to provide a source of livelihood for them, and the totality of those resources was resorting to trade. International trade and trade may be a profitable deal and another not profitable, which in the event of loss results in the merchant's bankruptcy. If the creditors adhere to their right to obtain their debts and do not agree to the settlement. In the face of this situation, solutions must be found to address it, and it was represented by the barter, that a certain creditor has a right over the bankrupt merchant, but at the same time, a financial consideration is available to the bankrupt debtor, and accordingly, this barter results in the disappearance of the two opposite debts despite the opening of the bankruptcy procedures and the concerned creditor obtaining his debt Indirectly, ahead of the rest of the creditors. It is clear from the foregoing that bankruptcy is considered a judgment on the merchant person that entails a number of procedures. Some of these procedures are in the interest of the merchant person. Bankruptcy here is legislated to protect the debtor and his creditors with respect to the debtor person, protecting him from the rest of the creditors who each of them intends to implement. On the money of the bankrupt merchant, and on the other hand, it is in the interest of the creditors, because the money of the merchant is divided equally among them, so that none of them will be alone in his money and the right of the remaining creditors will be lost.