Bankruptcy numbers hit a new high in Luxembourg in 2019, adding to the urgency for Luxembourg’s bankruptcy law reform to be finalised Shutterstock

Bankruptcy numbers hit a new high in Luxembourg in 2019, adding to the urgency for Luxembourg’s bankruptcy law reform to be finalised Shutterstock

According to figures from Creditreform’s monthly statistics compiled by Paperjam, there were 1,336 bankruptcies, up 11% on 2018.

The highest months for bankruptcy were March, 150, October, 141, and December, 128, the French-language publication reports.

It adds another level of urgency for Luxembourg’s bankruptcy law reform (bill 6539), which will be discussed by a small working group on 19 January.

The thrust of the reform centres aims to prevent bankruptcies through a raft of measures that will enable companies in difficulty to be reorganised. The reform also introduces the prospect of a second chance for bona fide traders to remain entrepreneurs. And includes a component for bad-faith players to avoid dropping one business and starting a new one.

Furthermore, the text includes a section on dissolving companies which have collapsed, have no assets but are not able to operate, according to parliament.