The claim of invalidity of actions and its impact on protecting the creditor (comparative study)

Volume 15, Issue: 2 part 2
Autumn 2024
Pages 875-892

Document Type : Research Paper

Author

College of Law and Political Science / University of Iraq

Abstract
The action of non-enforceability of dispositions, also known as the Paulian action, is an important legal tool to enhance and protect creditors' rights, ensuring that assets are not manipulated in a way that harms third-party interests. This preserves the stability of financial transactions and builds trust in the legal system. This action falls within what is known as "guarantee claims."

The action of non-enforceability of dispositions is a lawsuit filed by a creditor to invalidate the actions of their debtor that may harm them by weakening their general security and, consequently, their legal position. This can occur when the debtor sells or donates their assets with the intent to evade financial obligations or reduces their assets in a way that could prevent the creditor from recovering their dues. This action thus plays a crucial role in protecting creditors by preventing the debtor from irresponsibly handling their assets in ways that harm creditor interests and allows the creditor to proceed with enforcement actions on those assets as if they were still part of the debtor’s property.

Keywords

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Subjects
  • Receive Date 20 November 2024
  • Accept Date 24 November 2024