Gibraltar Location

New Insolvency Act

The Insolvency Act 2011 came into force on 1 November 2014. The act replaces the existing Bankruptcy Act 1934 and the sections in the Companies Act that dealt with liquidations (with the exception of members’ voluntary liquidations which remain under the Companies Act).

The long-awaited Act consolidates and modernizes existing insolvency legislation and introduces new remedies, procedures and options such as creditor voluntary arrangements, administration and administrative receiverships aimed at allowing the rescue, and turnaround of entities facing financial difficulties.

The act also introduces directors’ disqualification provisions, as well as a licensing regime for insolvency practitioners.