A legal analysis of insolvency provisions in Jordanian legislation and their comparative alignment with regional frameworks

This study examines the operation of insolvency under Jordanian Law No. 21 of 2018 and analyzes its implications for both debtors and creditors experiencing financial distress.It evaluates the procedural mechanisms for initiating insolvency, emphasizing the law's shift toward structured processes that balance financial rehabilitation with legal accountability.Particular attention is given to reorganization as a viable alternative to liquidation, enabling financially distressed yet economically feasible enterprises to restructure debts and maintain operations rather than face dissolution.The research adopts a descriptive-analytical and comparative methodology, combining legal text analysis with a cross-jurisdictional review of insolvency frameworks in Egypt and the United Arab Emirates to identify best regional practices.Primary sources include statutory provisions and judicial decisions, while secondary sources consist of legal commentaries, scholarly studies, and relevant economic reports.The study further investigates the role, rights, and limitations of creditors throughout insolvency proceedings and assesses the broader economic consequences of insolvency, particularly during periods of financial instability and constrained access to credit.The findings underscore the need for continued legal reforms to strengthen reorganization tools, streamline liquidation procedures, and enhance fairness between debtors and creditors.Ultimately, the study concludes that advancing Jordan's insolvency regime contributes to greater financial stability, supports distressed businesses, and protects stakeholder interests within an increasingly dynamic economic environment.