Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring and insolvency law in Amman, Hashemite Kingdom of Jordan, addresses the financial difficulties faced by individuals and businesses that are unable to meet their financial obligations. These laws are designed to balance the interests of creditors, debtors, and other stakeholders, while promoting economic stability. In recent years, Jordan has modernized its approach, incorporating international best practices through the Jordanian Insolvency Law No. 21 of 2018, which regulates insolvency procedures and establishes frameworks for both reorganization and liquidation.
Amman, as the commercial hub of Jordan, sees significant activity in terms of restructurings, reorganizations, and insolvencies. The legal frameworks in place are aimed at providing struggling businesses a chance to recover or to ensure an orderly winding down of affairs, all under judicial supervision.
Navigating restructuring and insolvency laws in Amman can be complex and the stakes are often high. Individuals and businesses may require legal assistance in a range of situations, such as:
An experienced lawyer can provide essential guidance, help negotiate with creditors, ensure compliance with statutory requirements, and work to protect your personal or corporate assets.
The legal framework for restructuring and insolvency in Amman is anchored in the Jordanian Insolvency Law No. 21 of 2018. This law introduced modern procedures for both restructuring and insolvency, including:
In addition, the Companies Law and Civil Code also intersect with insolvency matters, particularly for commercial enterprises. The Amman Court of First Instance typically oversees major proceedings in the capital.
Restructuring is a legal process that enables financially distressed companies to reorganize their debts and operations to avoid liquidation. Insolvency, on the other hand, refers to the inability to pay debts as they become due, potentially leading to liquidation if restructuring is unsuccessful.
Both individuals and legal entities who meet the criteria set out in the Insolvency Law may commence proceedings, either voluntarily or through a petition by a creditor.
The court assesses the financial status of the debtor. If criteria are met, the court may appoint an insolvency trustee, grant temporary protection against creditor claims, and determine the next steps (restructuring or liquidation).
Yes, the law allows businesses to continue operations under the supervision of a court-appointed trustee while a restructuring plan is negotiated and implemented.
Creditors participate in meetings, review restructuring or liquidation plans, have voting rights, and may contest proposals or the conduct of the debtor or trustee.
Timelines vary based on case complexity, but the law sets certain deadlines for plan submission and court reviews, often ranging from several months to over a year.
Creditors often receive partial payments based on asset liquidation and their priority status. Some debts, such as employee wages and government dues, may have priority according to the law.
Personal guarantees are typically enforceable, but enforcement may be affected by the insolvency process, creditor agreements, and court orders.
Yes, foreign creditors have rights under Jordanian law to participate in insolvency proceedings, file claims, and receive distributions on par with local creditors.
No, bankruptcy traditionally referred to individuals' inability to pay debts, while the modern insolvency framework (including corporate insolvency) now covers broader aspects of financial distress and reorganizational procedures.
For those seeking assistance or more information on restructuring and insolvency in Amman, the following resources may be helpful:
If you or your business is facing financial difficulty in Amman, it is wise to act promptly. Here are suggested next steps:
Obtaining professional legal advice early can make a significant difference in the outcome of restructuring or insolvency matters. The relevant laws in Amman are designed to provide fairness and structure under challenging circumstances, and a qualified lawyer can guide you through each step.
