Comparative Insolvency Law (LAWS90333)

Insolvency laws have developed significantly over the past few decades. No one still believes, as Napoleon did when discussing the French Commercial Code in 1807, that all insolvencies can simply be eradicated. However, insolvencies remain both a sign and consequence of economic turmoil, and insolvency processes can be optimised to reduce costs, save businesses and jobs, and even—on a wider scale—protect national economies.

Insolvency law has therefore become as crucial for economists as it is for lawyers, with considerable attention given to improving insolvency tools. This has resulted in global convergence of insolvency systems—in fact, all EU member states have recently reformed their insolvency laws by adopting common law-based principles. At the same time, legislators have recognised the importance of early intervention and prevention. Our field moves quickly and involves significant psychological impacts for people facing economic difficulties.

This subject aims to give you the skills and tools necessary to understand the main concepts behind insolvency procedures. We will focus on current problems and strategies in typical insolvency procedures, covering the main mechanisms that make insolvency systems efficient. We take a special perspective on EU systems with a focus on French law, while also making brief excursions into US law.