Liability of Creditors and Its Effects between Creditors and between Them and Debtor

Liability of creditors means that each of creditors- which may be two or more persons- is independently able to collect the whole loan from the debtor. In this way, if the loan is repaid to one of the creditors, the debtor will be released of his obligation. Since, in the Iranian Law, obligation is a multi-faceted phenomenon, the legislator has not clearly discussed creditors’ liability as waiving obligation and only in some rules has mentioned it dispersedly.
Whether it is based on conclusion of contract of attorneyship or a private contract or based on an independent contract or institution, liability of creditors will facilitate collection of debt as a result of which the debtor will be released of his obligations towards all creditors. What is collected belongs to all creditors and each of them will collect in proportion to his share. And all of them are entitled to refer to the creditor who has collected the debt.