Judicial principles and studies
Action to Void Debtor's Dispositions: Protecting Enforcement and Encircling Debt by Debtor's Assets
The study outlines the basis of the action to void a debtor's dispositions in Jordanian law—drawn from Islamic, notably Maliki, doctrine—and focuses on evidentiary rules and when dispositions are challengeable during or after general bankruptcy.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
The points state that Jordanian law provides an action to void a debtor's dispositions to protect enforcement by encircling the debt with the debtor's assets, deriving major rules from Islamic jurisprudence—especially the Maliki school—and closely linking the action to the concept of placing a bankrupt debtor under restriction.
Summary
The default rule allows the debtor to dispose of assets unless at death's door or placed under insolvency restriction, while the Maliki view limits harmful dispositions prior to restriction. Ordinarily the creditor bears the burden to prove insufficiency of the debtor's assets, but the legislator eased evidentiary rules under Civil Code Article 372: proving the debt on the debtor gives rise to a simple presumption that the debt encircles his assets; if that presumption stands and the debtor cannot rebut it by showing sufficient assets, dispositions that impoverish may be attacked. Dispositions during general bankruptcy are challengeable after creditors' demand and proof of encirclement and insufficiency; dispositions occurring before such demand and proof fall outside the action's scope. Given modern communications and commerce, if the transferee knew the debtor's general status, their transaction may be vulnerable to avoidance; the law does not require the transferee to be collusive.
Practical significance
The regime seeks balance between creditors' protection and a debtor's freedom to deal with property unless a presumption of encirclement arises. Article 372 lowers the evidentiary threshold for triggering the presumption but still requires the creditor to establish the underlying debt, while article 371 delimits when judicial demand is relevant for challenging acts during general bankruptcy. This summary is for general educational purposes and is not judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.