The law applicable to the executive procedures taken after the issuance of the bankruptcy Judgment

Doi:https://doi.org/10.37940/JRLS.2021.2.2.4

Abstract

The problem of conflict of laws on issue of bankruptcy in general and on the procedures might be taken after the issuing bankruptcy judgment in particular does not arise if the bankruptcy does not include a foreign element. The problem represents in determining the applicable law to procedures is in the case if there is a foreign element in relation to the bankruptcy, as if the debtor merchant whose bankruptcy is to be declared holds the nationality of a foreign country, or if the creditor is foreigner, or the merchant’s money is distributed between two or more countries. The problem of defining the law applicable to bankruptcy can arise in one of these hypotheses because the procedures are linked in this case to more than one legal system. However, often the applicable law in such cases is law of the country in which the bankruptcy judgment is being implemented on the stages of debt submission and debt realization, the powers of the bankruptcy trustee and the precautionary procedures that are taken by the bankruptcy trustee, with the exception of the issue of the handcuff the debtor merchant, which is governed by the law of the location of money.