15 Jun Abolition Of Bankruptcy and Fulfillment Of Reputation
In the event of the end of the bankruptcy liquidation, that is, if the assets are cashed and the receivables are paid, the Commercial Court which decides to open the bankruptcy decides to close the bankruptcy. The abolition of bankruptcy differs from its closure. Because while the bankruptcy liquidation is still in progress, it is decided to abolish the bankruptcy, in this respect, the removal of the bankruptcy will interrupt the liquidation process.
Another important difference between closing and abolishing the bankruptcy is that if the bankruptcy is abolished, the bankruptcy is considered as if it never happened and will disappear with all its consequences. For this reason, for example, there is no need to fulfill the reputation in order to remove the title of Muflis, because with the abolition of the bankruptcy, the bankruptcy disappears with all its consequences; the debtor is considered as if he had never taken the title of Muflis.
In the event that the debtor’s proposed concordat is accepted and approved by the Commercial Court, the bankruptcy administration may request that the Bankruptcy be lifted by applying to the Commercial Court, which decides to open the bankruptcy. This claim can only be made until the closing of the bankruptcy at the latest.
In the event that all creditors withdraw their demands and all receivables are redeemed, the Muflis may request that the Bankruptcy be lifted. If the Concordat is approved, the bankruptcy administration may request that the Bankruptcy be lifted.
The purpose of bankruptcy liquidation is to monetize the assets of the detachment and quickly pay the creditors ‘ rights. However, there is no need for bankruptcy liquidation if it is understood that all receivables will be paid during liquidation, that all creditors will withdraw their bankruptcy demands and that the debt will be paid in accordance with the provisions of the concordatoire. Therefore, it is decided to abolish the bankruptcy and the debtor is considered to have never gone bankrupt.
Once the liquidation of the bankruptcy has ended, the title of the Muflis does not end by itself. By showing the documents showing the payment of all the receivables accepted to the table, the muftis requests the fulfillment of the reputation from the Commercial Court which decides bankruptcy and thus ends his position as the muftis. In the event of the demise of the mufti, it may be requested by one of his heirs to restore the reputation from his death.
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