Legislative Policies for Balanced Protection of Bankrupt Debtors and Creditors in the Legal Systems of Iran and France: A Comparative Analysis Based on Contractual Justice

Abstract

Bankruptcy, as an exceptional condition within contractual relations, entails a specific legal regime established to regulate the relationship between the bankrupt debtor and creditors. Legislative policies in this domain play a crucial role in maintaining a balance between the rights and interests of both parties. This study aims to conduct a comparative analysis of legislative policies for the protection of bankrupt debtors and creditors within the legal systems of Iran and France, based on the theory of contractual justice. The research method is descriptive-analytical and comparative, and data have been collected through the study of library sources, statutory laws, judicial precedents, and both jurisprudential and doctrinal opinions. The primary research tool involves content analysis of legal texts and comparison of principles and rules in the two legal systems under study. The findings reveal that the French legal system has made considerable efforts to reintegrate the bankrupt individual into the economic cycle while preserving the rights of creditors, and that its protective policies demonstrate greater flexibility. In contrast, in the Iranian legal system, although certain protections for creditors are stipulated, the protective rules for the bankrupt party—particularly regarding the restoration of economic credibility—are limited and ineffective. The conclusion of this study underscores the need to revise Iran’s bankruptcy laws with an emphasis on contractual justice and to create a balance between the legitimate interests of the creditor and the bankrupt debtor. In light of the research findings, it is recommended that the Iranian legislature emulate the successful policies of French law and formulate and implement more dynamic protective regulations in line with broader economic and social objectives.