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Dr. M. E. Tafreshi Assistant Professor, Department of Law, Tarbiat modares University The Economic developments that was acquired in early centeries and influenced by commercial relations among businessmen caused goverments to be critical about fulfilment of businessmen's obligations. Whereas businessmen's debility for payment of debts causes confusion of affairs for other businessmen and renders difficulty on economic life. Goverments have stablished special regultions to protect the social system, businessmen, and Commercial relations to make distinction among principles of liquilation of the commercial and noncommercial debts such as principles of "Bankruptcy" in Iran's commercial Law, 1311. These regulations which are taken from European commercial Laws and aimed at businessmen and commercial companies are different from the Principles of Iran's civil Law governing Insolvency. While commercial Law is a part of our legal system, its regulations and principles must be in harmony with principles of Civil Law which is based on and in harmony with Figt Islamic Jurisprodence standards). This Article analyses the effects of bankruptcy degree on bankrupt's transactions with regards to the principles of Iran's Civil Law. There are three major differences between Civil and commercial Law which are discussed in the Article.

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