Bank Bankruptcy Lawsuit Procedures for Branches of Foreign Banks in Iraq

The cessation of the merchant from paying his commercial debts entails entering into financial hardship that leads to the possibility of declaring bankruptcy, and ruling in the case of bankruptcy, so there must be a competent court that considers all bankruptcy affairs, and in the event that the court announces the bankruptcy decision, this decision is absolutely authoritative, whether in terms of funds or persons, so most legislation at the present time assigns the task of declaring bankruptcy to specialized courts that differed in their rulings, whether in terms of jurisdiction or in terms of The entity that administers the bankruptcy and in terms of the impact obtained from the bankruptcy decision and the parties to appeal those decisions, the origin is that there is only a relative authority of the judgments, so their effects do not occur except for those who were a party to the litigation, and they are related only to the subject matter of the dispute. As for the bankruptcy judgment, its argument is absolute, when the judgment of bankruptcy is issued, the debtor is not considered bankrupt in view of the creditor only who requested the bankruptcy month, but it is also considered bankrupt for everyone and other creditors, even if they are not a party to the bankruptcy lawsuit, and the bankruptcy judgment deals with the entire liability of the merchant, as the bankruptcy month is considered as a general limitation of the trader's funds, whether they are related to his trade or not, and also includes existing (present) funds and future funds. It is possible to exist later as the goal here is to carry out a collective liquidation of the bankrupt's money. However, the bank tries to stand on its feet before carrying out any bankruptcy declaration procedure through the guardianship system or banking reorganization means in order to try to avoid the bank entering into more dangerous procedures of bankruptcy and liquidation and try to avoid declaring bankruptcy.