the possibility of creditors' intervention in the debtor's transactions when the debtor claims insolvency due to the absence of essential conditions of the transactions

Document Type : scientific

Authors

1 associate prof of guilan university

2 Phd. student in Private law, Department of Law, Faculty of Literature and Humanities, University of Guilan,

Abstract

Transactions that the debtor claiming insolvency conducts may lack one of the essential conditions for the validity of transactions; therefore, they may be void, or voidable. What has always attracted the attention of lawyer regarding the transactions of a debtor claiming insolvency is the issue of fictitious or with the intent to evade debt transaction. However, if the debtor's actual transactions, without the need to prove an intent to evade debt, for other reasons are void, dissolved or voidable and be subject to annulment and ratification and the possibility for creditors to intervene in such transactions as subrogates of the debtor, or to directly bring an action as interested parties, has been overlooked. This research, using a descriptive-analytical method and with the use of library resources, seeks to answer the question that can creditors, when confronted with a debtor claiming insolvency, rely on succession of creditors to null the transaction in hope of recovering the debtor’s specific assets and seizing them? Or may they directly declare his transactions void and automatic termination? Research findings indicate that creditors cannot always be considered as succession, but in the case of the contract being void due to the absence of one of the essential conditions or the occurrence of automatic termination, it is possible to accept the possibility of filing a lawsuit by creditors as substitute by proving the beneficial interest of the creditors through Islamic jurisprudential and legal principles.

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