This research aims to study and analyze bankruptcy and insolvency under the UAE legislation as well as compare both of them in terms of definition and conditions to be followed in each, as well as effects of each; the researcher has relied on the analytical approach in order to analyze the legal texts and discuss them and the comparative approach by comparing the available laws creditor and debtor, via legislation strong protection of the rights of the former, and clear and transparent legal texts open the opportunity for the latter to regulate its financial affairs, and schedule its debts, providing an investment environment that investors do not hesitate to enter, and considered as one of the safe areas for investment without risk.