Closing a Business

This topic identifies weaknesses in existing bankruptcy law and the main procedural and administrative bottlenecks in the bankruptcy process.

The table below shows the main indicators. They include:
  • average time to complete a procedure,
  • cost of the bankruptcy proceedings, and
  • the recovery rate, which calculates how many cents on the dollar claimants (creditors, tax authorities, and employees) recover from an insolvent firm.
"No practice" means that there have been less than 60 completed insolvency cases in the past 20 years. Click on column headers to sort data.

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Research

Debt Enforcement Around the World (PDF, 238 KB), by Djankov and others, Dec. 2006.
Region or EconomyTime (years)Cost (% of estate)Recovery rate (cents on the dollar)
East Asia & Pacific2.723.228.1
Eastern Europe & Central Asia3.213.728.9
Latin America & Caribbean3.216.425.9
Middle East & North Africa3.713.925.8
OECD1.37.574.1
South Asia5.06.520.1
Sub-Saharan Africa3.420.017.1
Afghanistanno practiceno practice0.0
Albaniano practiceno practice0.0
Algeria2.5741.7
Angola6.22210.8
Antigua and Barbuda3.0735.7
Argentina2.81234.4
Armenia1.9442.0
Australia1.0879.2
Austria1.11872.4
Azerbaijan2.7831.5
Bangladesh4.0823.2
Belarus5.82233.2
Belgium0.9485.5
Belize1.02363.5
Benin4.01522.6
Bhutanno practiceno practice0.0
Bolivia1.81538.7
Bosnia and Herzegovina3.3935.0
Botswana1.71559.8
Brazil4.01214.6
Brunei2.5445.3
Bulgaria3.3932.4
Burkina Faso4.0925.6
Burundino practiceno practice0.0
Cambodiano practiceno practice0.0
Cameroon3.21525.5
Canada0.8488.8
Cape Verdeno practiceno practice0.0
Central African Republic4.8760.0
Chadno practiceno practice0.0
Chile4.51523.8
China1.72235.9
Colombia3.0158.3
Comorosno practiceno practice0.0
Congo, Dem. Rep.5.2292.9
Congo, Rep.3.02420.4
Costa Rica3.51523.1
Côte d'Ivoire2.21833.0
Croatia3.11530.2
Czech Republic6.51521.3
Denmark1.1487.0
Djibouti5.01815.9
Dominicano practiceno practice0.0
Dominican Republic3.5388.4
Ecuador5.31816.9
Egypt4.22216.6
El Salvador4.0928.4
Equatorial Guineano practiceno practice0.0
Eritreano practiceno practice0.0
Estonia3.0939.1
Ethiopia3.01533.1
Fiji1.83820.2
Finland0.9488.2
France1.9947.4
Gabon5.01515.2
Gambia3.01519.3
Georgia3.3422.8
Germany1.2853.4
Ghana1.92224.0
Greece2.0944.8
Grenadano practiceno practice0.0
Guatemala3.01528.1
Guinea3.8820.4
Guinea-Bissauno practiceno practice0.0
Guyana3.02917.4
Haiti5.7303.1
Honduras3.81520.3
Hong Kong, China1.1979.0
Hungary2.01538.4
Iceland1.0480.3
India10.0911.6
Indonesia5.51812.6
Iran4.5919.0
Iraqno practiceno practice0.0
Ireland0.4987.1
Israel4.02343.6
Italy1.82261.8
Jamaica1.11864.3
Japan0.6492.6
Jordan4.3927.8
Kazakhstan3.31823.4
Kenya4.52231.0
Kiribatino practiceno practice0.0
Korea1.5481.2
Kuwait4.2133.6
Kyrgyz Republic4.01515.6
Lao PDRno practiceno practice0.0
Latvia3.01334.6
Lebanon4.02219.1
Lesotho2.6834.9
Liberia3.0437.8
Lithuania1.7749.2
Luxembourg2.01541.6
Macedonia, FYR3.72815.8
Madagascarno practiceno practice0.0
Malawi2.63013.2
Malaysia2.31538.3
Maldives6.7418.2
Mali3.61821.3
Marshall Islands2.03817.9
Mauritania8.097.8
Mauritius1.71534.3
Mexico1.81863.9
Micronesia5.3383.1
Moldova2.8928.8
Mongolia4.0820.1
Montenegro2.0842.8
Morocco1.81835.3
Mozambique5.0913.9
Namibia1.51541.3
Nepal5.0924.5
Netherlands1.1486.7
New Zealand1.3477.1
Nicaragua2.21534.6
Niger5.01814.2
Nigeria2.02227.5
Norway0.9190.7
Oman4.0435.5
Pakistan2.8439.1
Palau1.02338.2
Panama2.51832.3
Papua New Guinea3.02323.9
Paraguay3.9914.6
Peru3.1724.7
Philippines5.7384.2
Poland3.02227.8
Portugal2.0974.0
Puerto Rico3.8854.1
Romania3.3928.9
Russia3.8929.0
Rwandano practiceno practice0.0
Samoa2.53815.2
São Tomé and Principeno practiceno practice0.0
Saudi Arabia2.82229.3
Senegal3.0732.4
Serbia2.72323.1
Seychellesno practiceno practice0.0
Sierra Leone2.6428.5
Singapore0.8191.3
Slovakia4.01845.2
Slovenia2.0846.6
Solomon Islands1.03823.3
South Africa2.01833.2
Spain1.01576.9
Sri Lanka1.7544.6
St. Kitts and Nevisno practiceno practice0.0
St. Lucia2.0941.8
St. Vincent and the Grenadinesno practiceno practice0.0
Sudanno practiceno practice0.0
Suriname5.0307.4
Swaziland2.01536.0
Sweden2.0974.7
Switzerland3.0447.1
Syria4.1930.8
Taiwan, China1.9480.2
Tajikistan3.0923.6
Tanzania3.02220.5
Thailand2.73641.8
Timor-Lesteno practiceno practice0.0
Togo3.01526.3
Tonga2.72225.3
Trinidad and Tobagono practiceno practice0.0
Tunisia1.3751.5
Turkey3.31520.3
Uganda2.23041.0
Ukraine2.9429.1
United Arab Emirates5.13010.1
United Kingdom1.0684.6
United States1.5775.9
Uruguay2.1744.8
Uzbekistan4.01018.7
Vanuatu2.63839.3
Venezuela4.0386.6
Vietnam5.01518.0
West Bank and Gazano practiceno practice0.0
Yemen3.0828.6
Zambia2.7928.4
Zimbabwe3.3220.1