The Effects of Bankruptcy

The court may prevent the bankrupt from leaving the country for a specified period, and the bankrupt may file a grievance against this matter without causing the suspension of its implementation.

Prevention of Candidacy

It is not permissible for the bankrupt to be a member or director of the board of directors of any company and he cannot work in banks, commercial agencies, import, and export, if he does not want to be considered, but he may manage the funds of his children if they are minors and be authorized by the court.

Doing Business

All the properties owned by him go into bankruptcy on the day of the bankruptcy ruling, but this does not include the following:

  • Funds that are not legally prohibited and the subsidies that are reported to the bankrupt.
  • Funds owned by non-bankrupt persons.
  • Compensations.

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The Legacies

The estate shall be transferred to the bankrupt, whose creditors shall not be entitled to any of it except after the successor’s creditors have fulfilled their rights in these funds.

Effects of Bankruptcy
Effects of Bankruptcy

Lawsuits

No lawsuits are filed by the bankrupt or upon him after the issuance of a bankruptcy ruling, except for the following:

  • Associated dispositions and funds that do not apply to the hand.
  • Criminal cases.

The Bankrupt and His Family

Support is deducted from the assets to the extent that it allows bankruptcy to fulfill his family’s needs.

Political Rights

All political and civil rights are forfeited from bankruptcy, but these rights are recovered in case of rehabilitation.

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Commercial Consideration

Restore all the rights that fell from him, and restore his social status.

The Effects of Bankruptcy on Creditors

The Discerning

The declaration of bankruptcy results in the cessation of any individual claims brought by the aforementioned.

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Ruling on Declaring Bankruptcy

All cash debts of all types shall be paid by the bankrupt.

Unique Benefits Claim

The debit interest shall cease to be valid for creditors only, and it is not permitted to claim the debts that are securely granted.

Landlord Right

He shall guarantee the remuneration owed to him by the bankrupt for the year preceding the declaration of bankruptcy.

Taxes

It does not include taxes of all kinds except the debt due tax, which relates to the last two years before the bankruptcy.

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