Bank bankruptcy In view of Law No. (40) for the year 2003

Credit is the basis of dealing in commercial life, but the success of the merchant (whether an individual or a legal entity) is closely linked to the extent of confidence that his clients give him, especially if we know that the business activity is done by capital, which is often huge money. They may not immediately have a reason to defer payment and request later terms from their creditors who grant it based on this credit and their confidence in it. However, such a term cannot be left without a means of protection to ensure that creditors claim their rights if the debtor merchant fails to pay the debt. Therefore, we note the legislator in the various laws did not leave it without legislative regulation and established a system of bankruptcy as an important tool and a means to pressure the trader abstaining or who has stopped paying his debts.