Bankruptcy and Financial Restructuring of Companies According to Modern Laws: A Comparative Analytical Study with International Legislation

Abstract

        The paper discusses how modern bankruptcy law facilitates financial reorganization (rehabilitation) of distressed companies rather than simple liquidation. The research addresses the basic principles of insolvency systems, procedural mechanisms, and practical and legal obstacles. A special section focuses on the Iraqi legal framework and identifying gaps. This is evident through the research’s use of a descriptive and analytical approach based on a review of international and local literature, reports and publications.  Therefore, the aim of the research is to clarify that reality, analyze the basic principles of contemporary insolvency systems, evaluate the procedural mechanisms that protect debtors and creditors during reorganization, and identify the practical and legal obstacles that prevent the success of restructuring processes. Focusing on the part related to the Iraqi legal framework, and identifying the gaps that limit the effective reorganization process. The research reached a number of practical conclusions and recommendations for reforming the law, building judicial capacities, and improving coordination among stakeholders.