Changes in bankruptcy legislation

A market protection based on efficiency and rapidity. This is the way how Italy´s legislation regarding business crisis is changing. A draft plan for reform of the bankruptcy law has been drawn up and is currently in the approval stage. The new legislation seeks, in the first instance, to save those firms which are in crisis (sometimes only temporary), rather than punishing the entrepreneur responsible. In line with rules adopted by most of the EU Countries, the solution of liquidation of the company´s assets has given way to their conservation, in order to attempt recovery. As in North American legal systems, the composition with creditors, temporary receivership, bankruptcy and compulsory administrative liquidation procedures are replaced by just two new procedures, both of which are simpler and less expensive: crisis and insolvency. Greater space is allowed to agreements between the parties, between creditors and debtors. Among other things, the sale of property is allowed through private negotiation, if this is thought to be advantageous. After discussions with the creditors involved, the official receiver shall decide, on the basis of applications received, if a sale should be requested according to this procedure. The obligation of residence for those individuals subject to bankruptcy proceedings is no longer necessary, in order to meet the travel needs of the firm´s owner, especially abroad.