Debt Discharge in Bankruptcy Laws" A Comparative Study"

Document Type : Original Article

Author

Associate professor of private law College of Law - Kuwait University Lawyer before the Royal Courts of England and Wales And the courts of the state of California in the United States of America

Abstract

The adoption of discharge of debts principle in some bankruptcy laws raises legal and jurisprudential debates regarding its effectiveness in the legal framework of bankruptcy. Common law and certain European jurisdictions consider this principle as a fundamental and  cornerstone of their bankruptcy laws, yielding numerous positive economic and social effects in dealing with honest debtors. Debt discharge is considered to be a fundamental right for debtors in many of these jurisdictions as debts are automatically discharged without the need for creditor consent. Conversely, other laws as s the case in many Arab laws, view this principle as favoring the insolvent debtor at the expense of the creditor and could result in unintended consequences. This perception has led those laws to overlook the principle and not incorporate it in their recent bankruptcy laws. This study aims at exploring the regulatory landscape of  debt discharge principle in comparative laws. It will define the concept of the principle of debt discharge, its justifications, goals, and historical evolution. Additionally, it will analyze its conditions and scope of application.

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