The Effect of the Law on the Implementation of Financial Convictions on Bankruptcy Principles of Persons, their Insolvency Claims and Dealings for Debt Payment Evasion

The concept of bankruptcy in Iran's law, in accordance with article 412 of the Commercial Code of 1311, has merely been the subject of businessmen but the Law on the Implementation of the Financial Convictions of 1394 approved by the Expediency Council has been taken to extend the persons subject to bankruptcy and article 15 of this law also subjects non-legal persons to bankruptcy laws. The analysis presented in this article suggests that, in addition to businessmen, non-business legal persons are also subject to bankruptcy rules. Non-business legal persons may include legal persons in public or private law. In this case, legal entities may also be subject to bankruptcy rules other than governing institutions. Furthermore, in the said law, the dealings for debt payment evasion with the conditions prescribed in it expanded to include legal persons and has caused conflicts between this law and Commercial Code (articles 424 and 500 of Commercial Code). Also, a certain formal procedure is introduced for insolvency petition of businessmen and legal persons, which can be criticized.