Methods of Addressing Debtor Insolvency in Islamic Jurisprudence and the Jordanian Civil Code: A Comparative Study 10.35781/1637-000-140-001

Abstract

This study examines the methods of addressing the insolvency of debtors in Islamic jurisprudence and the Jordanian Civil Code through a comparative analytical approach. It explores the concept and conditions of insolvency, along with the mechanisms adopted in Islamic law, including granting time extensions to debtors, allocating a portion of zakat funds to them, restricting their financial dealings when necessary, allowing contract rescission in certain cases, and obligating the insolvent debtor to seek lawful earnings. The study also analyzes the legal framework of the Jordanian Civil Code regarding the declaration of insolvency, its prerequisites, procedures, and legal consequences affecting creditors’ rights and the debtor’s obligations. The research concludes that Islamic jurisprudence is distinguished by its moral and purposive dimension, as it integrates principles of compassion, social solidarity, and preservation of human dignity in dealing with insolvent debtors. In contrast, the Jordanian Civil Code focuses primarily on judicial and procedural measures to ensure financial stability and creditor protection. Despite differing approaches, both systems share the objective of achieving financial justice, regulating transactions, and safeguarding rights. The study recommends that modern legislation draw inspiration from the ethical and social principles of Islamic jurisprudence to balance creditor protection with consideration for the debtor’s circumstances. It also calls for flexible mechanisms such as debt rescheduling or assistance through zakat funds, in fulfillment of Sharia objectives of alleviating hardship and promoting mercy and solidarity within society. Keywords: Debtor insolvency, financial distress, ḥajr (judicial restraint), debt settlement, Islamic jurisprudence, Jordanian Civil Code.