Legal rules governing the insolvency of debtors in Jordanian legislation

The Jordanian legal system has introduced a new insolvency framework to address debtors' financial distress while safeguarding creditors' interests.This law represents a significant shift, aiming to align the legal and economic sectors by establishing procedures for both natural and legal persons.It encourages debtors to rectify their financial situations and provides mechanisms for their recovery from insolvency.The legislation promotes cooperation with insolvent debtors to aid in their rehabilitation.Our research examines the rules governing insolvency in Jordan, covering the declaration, procedures, and termination of insolvency, along with its consequences.A key finding is the presence of legislative flaws, particularly the absence of penalties for violating deadlines in reorganization schemes.We recommend that lawmakers enhance protections for creditors with secured rights, as they are at risk under current provisions.Strengthening these guarantees would better balance the interests of all parties and improve the effectiveness of the insolvency framework.