A Comparative Study of the Effects of Bankruptcy in Iranian and French Law

Today, one of the most important issues due to the expansion of economic activities and rapid developments in production, trade, technology, etc., is bankruptcy. The inability of traders and commercial companies to pay their debts on time causes them to stop and go bankrupt, as well as disrupting business affairs and creating adverse effects on the national economy. As a result, the effects of bankruptcy do not only include the businessman and the trading company, but in most cases also affect the economic situation of others and are related to the public interest of society. Given the competitive environment in the national and international dimensions, the facilitation of bankruptcy matters can play an effective role in improving the business environment and boosting economic activities, as well as increasing the willingness of foreign investors to invest. In French law, there is no difference between a merchant and a non-merchant, and all commercial and non-commercial persons and companies are subject to bankruptcy, but in Iranian law, only merchants and commercial companies are subject to bankruptcy. With the development of countries, the French Commercial Code has been amended several times since 1807 AD, so that the last amendment was made in 2005 and the necessary rules and regulations were set in various issues related to suspension and bankruptcy, which do not exist in the Iranian Commercial Code. Therefore, it is necessary that the trade law of Iran be amended and revised in accordance with the current economic and commercial conditions.