Bankruptcy - Luxembourg

Updated 01/2010

Legal requirements

Entrepreneurs may be able to avoid bankruptcy by anticipating difficulties – if they keep a close eye on the financial situation of their business.

Financial difficulties — Luxembourg

Bankruptcy results from a persistent state of credit weakness and insolvency of a trader.

Bankruptcy
Companies and bankruptcy

Responsible bodies

The Luxembourg and Diekirch district courts are the competent bodies in bankruptcy cases.

District court of Luxembourg
District court of Diekirch

Coping with bankruptcy

A business owner has various means of safeguarding jobs and business activity.

Safeguarding jobs
Safeguarding the business

Entrepreneurs having experienced bankruptcy should not lose confidence in their ability to embark on a new business.

Business — Starting up

Administrative procedures

Bankruptcy procedure: a step-by-step guide

Within Luxembourg, you can initiate bankruptcy proceedings in three ways:

by admission: a business owner who becomes insolvent must inform the court clerk's office about this within the same month;
by application: the bankruptcy is declared after application by one or more creditors of the company;
ex officio by the court.
Admitting bankruptcy to the clerk of the court
District court of Luxembourg
District court of Diekirch
Companies and bankruptcy
Effects of the declaratory judgment of bankruptcy for the subject

Court decision

Enforced liquidation

If you are judged bankrupt, you must relinquish the administration of your assets to a receiver who will be responsible for representing the bankrupt company and the interests of the creditors. The court will also appoint a bankruptcy judge responsible for accelerating and monitoring operations, management and liquidation of the bankrupt estate. The company must immediately cease its activities.

As soon as the bankruptcy judgment is announced, all civil proceedings must be suspended.

Effects of the declaratory judgment of bankruptcy for the subject

Resources

The Guichet entreprises business portal offers information on company bankruptcies.

Bankruptcy - Guichet entreprises
List of bankrupt companies - Guichet entreprises

Check also the legislation on this topic in:

Bankruptcy - Luxembourg