Judicial restructuring in light of the new Kuwaiti Bankruptcy Law No. 71 of 2020

Not long ago, comparative legislation organized a specific way that provides protection for creditors to meet their debts by executing on their debtor's funds, in the event that he stops paying his obligations towards them due to his insolvency, which is known as the bankruptcy system, which leads to the liquidation of the bankrupt debtor's funds, closing his hand from management and disposing of his funds until they are sold and distributing the proceeds to the rights holders - each of them - in proportion to his debt owed by the debtor. Since this system is characterized by cruelty and does not guarantee adequate protection for the bankrupt in good faith, and despite the existence of the protective composition system from bankruptcy as a means of assisting the bankrupt in good faith, the preventive composition procedures from bankruptcy do not always lead to the continuation of the business of companies or the bankrupt trader, which prompted comparative legislation to search for practical solutions to maintain the continuity of the company's or project's business instead of rushing for liquidation and bankruptcy.