Abstract:
Globalization has involved globalizing law through extending some western legal
regimes, particularly from American law, to developing countries. Remaking bankruptcy
law on a new policy is one example. Although bankruptcy law needed reform, it seems that
appropriate reforms to cope with contemporary economic crises and changes are believed to
be better achieved through importing foreign legal regimes. Thus, globalization promotes a
particular legal system. For example, the new bankruptcy laws of Jordan and Saudi Arabia
adopted in 2018 have been drawn on the American bankruptcy law. This article seeks to
disprove that belief by demonstrating that Islamic fqh regulates many matters that defne
modern bankruptcy laws, such as treating traders and non-traders alike and protecting debtors
acting in good faith. This article suggests a number of ‘fqh propositions’ for developing new
solutions based on fqh, such as introducing criteria for fnancial hardship and solvency for
the purpose of suspending claims against enterprises whose operation serves public interest,
the applicability of the theory of abuse of the right in this domain, and the possibility of
extending Zakat funds to moral entities for whose debts individual members are liable, like
general partnerships. Demonstrating that bankruptcy law can be developed based on fqh
may well encourage legal education to pay more attention to the study of fqh as a basis
for developing national laws and their contribution to solving common problems across
societies, and globalization will then be a collaborative product of cultures and legal systems
rather than imposing one legal system
