The nature of international insolvency and the requirements for its application according to the Jordanian Insolvency Law No. 21 of 2018 "An Analytical Study"

Abstract

This study deals with international (cross-border) insolvency, and demonstrates its main concept and application requirements according to the Jordanian law of insolvency number 21 of 2018 year, which was adopted by the Jordanian legislator based on the model law of The United Nation Commission on International Trade Law (UNCITRAL).

The study discussed the sufficiency of the legal texts of the international insolvency in the Jordanian law in adopting obvious criteria for the internationality of insolvency and solving the problem of multinational and cross-border companies. Moreover, it focused on the requirements for admission of cross-border insolvency and the foreign insolvency procedures.

The study revealed that the cross-border insolvency aims to put an efficient and effective system to manage the procedures of the international insolvency where the benefits of the creditor and debtor who presents in different countries are equal. The main recommendation of this study was the importance of adopting obvious standard for internationality of insolvency by the Jordanian legislator through adding a definition to the second object of the insolvency law, in order to clarify the acceptance of combining both legal standard , which base on the nationality difference between the creditor and debtor, and the ability of the debtor to practice his business in foreign country, and the economic standard that base on distributing the money of the debtor in diverse countries.