Abstract:

The law of bankruptcy provisions is contained in the Enforcement and Bankruptcy Code No. 2004 (EBC) which applies all kind of bankruptcy proceedings. The bankruptcy proceeding is focus on satisfaction of all creditors as a group, rather than on any one creditor. A creditor who wants to file for bankruptcy must apply to competent enforcement office (EBC a. 154). A written bankruptcy payment order is sent through the enforcement office to the debtor. This bankruptcy payment order contains a warning to the debtor that creditor can claim the insolvency of the debtor form the commercial court if the debtor fails to pay the debt, or to declare his objections to the claim of debt within seven days (EBC a. 155). After declaring the debtor’s objections within seven days, bankruptcy proceeding against the alleged debtor automatically stops. Upon objection to bankruptcy payment order, the creditor may, within one year after serving of the bankruptcy payment order on the debtor, go to the commercial court and claim dismissal of objection and adjudicate the debtor bankrupt. If objection to bankruptcy payment order is not requested by the end of seven days, the creditor will go to the commercial court and only claim adjudicate the debtor bankrupt (EBC a. 156). In bankruptcy litigation, the court hears the debtor and the creditor and decides the existence of the claimed debt in accordance with general law provisions (EBC a. 158). Upon bankruptcy claim, the court may take all kinds of measures required for protection of interests of the creditors (EBC a. 159). In this process, bankruptcy litigation is a part of the whole bankruptcy proceeding rather than a separate litigation

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