Suspension of Proceeding in Bankruptcy due to Fraud and Fault in Iranian Law and Jurisprudence

Bankruptcy means the trader is unable to pay the debt. By issuing the verdict of bankruptcy, the merchant is deemed Mahjour (interdicted man) and will not be allowed to seize his/her property. After that, the legal competence of the bankrupt person is left to the receiver in part of his financial rights. It is possible that a businessman intentionally or by his/her negligence acts that would cause him to go bankrupt and cause a loss to creditors. Therefore, the criminal legislature has criminalized two criminal titles of bankruptcy due to fraud and bankruptcy because of fault. If the bankrupt person's case is in the process of proceedings, his hearing will be suspended pending the appointment of the receiver. In relation to the effect of issuing the verdict of bankruptcy on the implementation of the court decision, if decision is related to financial matters, the proceedings will be suspended, but if the sentence is related to non-financial matters, the proceedings will not be stopped.