The Impact of Bankruptcy on Debt Terms

By أية سعد good
Last updated 29 June 2020
The Impact of Bankruptcy on Debt Terms

Bankruptcy provisions apply to individuals to apply to commercial companies, and the laws stipulated the forgiveness of debts for companies or individuals that declare bankruptcy.

Bankruptcy

Types of debts that fall when bankruptcy is declared:

The first

It falls after bankruptcy, whether commercial or ordinary debt, and there is no difference between ordinary debt and the other secured by concession or mortgage.

The second

Projection is limited to ordinary debt and does not include debts secured by lien or mortgage.

Also read: Learn the Effects of Bankruptcy of Joint-Stock Companies

The Bankruptcy on Property Rent

The company resorts to renting a property to be used in its management and carrying out its activities. Is the deferred rent for the property resolved after bankruptcy is declared?

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The Bankruptcy on Outstanding Debt

Debt is attached to two conditions:

  • An obligation exists, and no obligation can exist without the condition being met.
  • Achieving the obligation will result in the removal of the obligation.

The bankruptcy of companies on debts suspended on the abrogated condition, the laws of trade, including the Egyptian law, they have dealt with this matter and the text of the law is that it is permissible to participate in debts suspended on an abrogated condition with the presentation of a guarantor.

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A Bankruptcy on Debt Borrowed Interest

If the deferred debt is associated with interest, and the debtor declares bankruptcy and the debt become deferred, then this debt has fallen, and this is what is stated in the Egyptian commercial laws.

A Bankruptcy on Deferred Debt

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Commercial laws in many Arab countries stipulate that the ruling on bankruptcy cancels debts, and it is stipulated that to cancel debt deadlines, a judgment is issued declaring bankruptcy.

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Taxes

It includes the privilege established towards the government, where other taxes are included under regular debt

Workers’ Rights

The treasurer of the bankruptcy pays the workers during the first ten days following the issuance of a judgment declaring bankruptcy of what is under his hand even though there is any other debt. Salaries and wages are the amounts due 30 days before bankruptcy is declared for those who work for the bankrupt, and in the absence of funds to pay These wages These debts are paid first when no money is available.

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اقراء المقالة باللغة اخرى : العربية

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