Article 159 of Bankruptcy Law

A judgment may be rendered declaring ineffective against creditors the registration of mortgage rights or privileges established over the assets of a debtor in respect of whose Law Index 1425 Home Page Bankruptcy Law Law No. 71 of 2020 Promulgating the Bankruptcy Law debts a decision opening bankruptcy declaration proceedings has been issued, if registration occurred after the date of cessation of payment, provided that the creditor's knowledge that the debtor had ceased paying his debts is established. The preceding paragraph shall not apply if registration of the mortgage right and privilege is for the purpose of renewing an existing debt secured by the same rights over the same assets and those rights were registered as security for the existing debt on a date preceding the date of cessation of payment, or if registration was made pursuant to a contract authenticated on a date preceding the date of cessation of payment. The creditor holding the mortgage subsequent to the mortgage declared ineffective shall take the rank of that mortgage. Nevertheless, he shall receive from the proceeds of sale of the mortgaged asset only what he would have received had the preceding mortgage been effective, and the difference shall accrue to the body of creditors.