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Adopted text

Harmonising certain aspects of insolvency law

TA-10-2026-0057 · P10_TA(2026)0057 · PE771.863

✦ In short · AI summary of this text, generated 4 Sept 2026

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Parliament's amended version of the proposed directive harmonising certain aspects of insolvency law. It sets out rules on when insolvency proceedings may be opened, the duties of directors, and the avoidance of transactions that harm creditors.

Key points

  1. The directive applies to insolvency proceedings concerning debtors that are companies or firms, as defined in the Treaty.
  2. Member states must ensure that courts can open insolvency proceedings only if the debtor is insolvent, with insolvency defined as the inability to pay debts as they fall due.
  3. Directors must file for insolvency within a specified period after becoming aware of insolvency, or face liability for losses caused by delay.
  4. Transactions entered into by the debtor that unfairly prejudice creditors may be challenged and set aside if they occurred within a certain period before the opening of proceedings.
  5. The directive requires member states to provide for the possibility of restructuring plans to be approved by creditors and confirmed by courts, with safeguards for dissenting creditors.
  6. It establishes rules on the ranking of claims, ensuring that certain preferential claims, such as employee wages, are paid before ordinary unsecured claims.

Who is affected

  • Companies and firms that may become insolvent, their directors, creditors, and courts handling insolvency proceedings in EU member states.

Legal basis: Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union