Background and Aim: The purpose of this article is to examine the conditions and effects of the Arafah contract in commercial law.
Materials and Methods: This article is descriptive and analytical. Materials and data are also qualitative and data collection was used in collecting materials and data.
Ethical Considerations: In this article, the originality of the texts, honesty and trustworthiness are observed.
Findings: The findings showed that the effects of bankruptcy begin with the issuance of a bankruptcy order and end as a result of three reasons (the termination of liquidation, the occurrence of a settlement agreement, and the issuance of a credit restoration order). Among the above three reasons, the termination of liquidation and settlement agreement do not completely end the bankruptcy, and despite their realization, some negative effects of bankruptcy still remain, but the credit restoration order is one of the complete reasons for the termination of bankruptcy, and after that, all the restrictions and exclusions of the businessman are removed. . The scheme of arrangement is a way out for the bankrupt businessman so that he can get rid of the effects and consequences of the bankruptcy order.
Conclusion: The result is that despite the fact that the commercial law has described and expressed the terms and effects of the scheme of arrangement, it is silent and contains ambiguity in some issues. This article examines the conditions and effects of Scheme of arrangement with descriptive and analytical method.