CONSEQUENCES OF BANKRUPTCY JUDGMENT

Judgment of bankruptcy leads to bankruptcy of merchant. Therefore, merchant will be incapable and cannot possess in his asset. Various provisions can be found in commercial code, regarding contract’s of bankrupt merchant, which is inconsistent with civil code. Article 423 has stipulated that trades of merchant after bankruptcy, in three cases will be void. This position is not consistent with civil code which implies that transactions which are against the benefit of merchant is dependent on verification of debtors are invalid ones. The last step to remove incapacity from bankrupt merchant is rehabilitation of bankruptcy. However rehabilitation of bankruptcy of corporate is doubtful. Because of survival of juristic personality until at end of liquidation of a company and general interpretation of “any bankrupt merchant”, rehabilitation of juristic personality is acceptable.