Study on a new approach to business failure and insolvency : Comparative legal analysis of the Member States’ relevant provisions and practices, Tender No. JUST/2012/JCIV/CT/0194/A4

This report, commissioned by the European Commission DG Justice, documents a comparative study on substantive insolvency law throughout the EU. It also includes an analysis of the EC Recommendation on a new approach to business failure and insolvency and its implementation in Member States. The report’s findings and analysis were based on data on various insolvency law matters which was provided by national reporters from all EU Member States and two comparator countries, the United States and Norway. The report provides a horizontal cross-cutting analysis of the data identifying areas where disparities in national law create problems that have impacts outside of national boundaries. The areas covered by the report are : the duties and liabilities of directors and director disqualification; rules on the ranking of claims/order of priorities and the conditions under which certain detrimental acts can be avoided; conditions that exist for the opening of insolvency proceedings and fast-track or standardised procedures for small and medium sized enterprises (SMEs); the extent to which the EC Recommendation on a new approach to business failure and insolvency and the provision of second chance for entrepreneurs is reflected in Member States’ approach; procedures available to overindebted consumers and explaining how over-indebtedness is dealt with in the Member States including the conditions and timeframe for debt reduction and discharge; and conncected matters such as length of the procedures, involvement of creditors, publicity and cost.