When bankruptcy is a necessity

Business is risk-based and barely escapes from consequences and impurities; Everyone who trades is aware that he is prone to financial shake-up; It is not immune to economic risks and cannot be spared from market turmoil from time to time; Hence the bankruptcy system, which is a real revolution in commercial law and is the most important pillar in the financial and business community, was born, preserves the remainder of the face of the merchant and contributes to saving what can be saved and gives him a great opportunity to capture and control his financial position and directly assist him in rebalancing it to stay longer In the market and to resume his activity and complete his career.
But if the deficit manages to him and is unable to continue his trade, this system has guaranteed him exit from the market with the least losses by maximizing the value of his assets and selling it regularly at the highest possible price and even ensuring him a fair distribution between his creditors ..
The system did not come only to protect the debtor and provide him with temporary immunity; Rather, it also came to protect the creditors and take care of their interests by preserving their money and putting a hand on it so that the debtor does not overstay or misuse it.
The declaration of bankruptcy has also begun to protect the rights of financiers, banks and bondholders, and to preserve their money from waste and loss.
Bankruptcy as a matter of origin is reprehensible and somehow offends the trader’s record; But it is the last disease, the rescue rope and the lifeboat, and it may be a bullet of mercy for those who were unable to stand on their feet and could not withstand the storm; This indicator is, of course, unhealthy, but it re-evaluates companies and distinguishes between those who are effective and protects them and helps them to survive and those that cannot add value to the local economy so it gets rid of them and allows for the emergence of those who are more efficient and able to compete and stronger to survive ..
Because of the importance of this system and its being rigid, it is characterized by some ambiguity, and because its procedures are identical in some matters and it fails in many of them, especially with regard to durations and implementation procedures; So I tried to simplify this system through a series of tweets that I tried hard not to go into details about.Here is the link for this series, which I hope will find you satisfaction and acceptance:

يعد(نظام الإفلاس)أحد أهم وأحدث الأنظمة التجارية ولا يستغنى عنه في مجتمع المال والأعمال.
ونظرا لكون هذا النظام يمتاز ببعض الصعوبة وفيه تماثل وتوافق وتباين بين مصطلحاته وموضوعاته فإنه يحتاج إلى دقة في التركيز واستيعاب أكبر.
وتحت هذه التغريدة سأوضح على فترات أهم ملامحه بتبسيط وتوضيح

— د. عبداللطيف السويد⚖️ Lawyer Dr. Abdulltif Alsweed (@alsweed_Lawyer) June 4, 2020