Resolving Insolvency

This topic identifies weaknesses in existing insolvency law and the main procedural and administrative bottlenecks in the insolvency process. The most recent round of data collection for the project was completed in June 2015. Read the methodology.

Use the tabs to view Resolving Insolvency data and analysis, reform summaries, frequent questions and related resources. Click on economy name for detailed information. Click on column headers to sort.

About Doing Business

The data and analysis appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small to medium-sized domestic business in 189 economies.

Subnational = Subnational Doing Business data available. Multi City = Multi-city data for same economy is available.
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Recovery rate (cents on the dollar)

The recovery rate calculates how many cents on the dollar secured creditors recover from an insolvent firm at the end of insolvency proceedings.

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Time (years)

The average duration of insolvency proceedings. The time of the proceedings is recorded in calendar years and includes all appeals and delays.

Disclaimer: If an economy had zero insolvency cases a year over the past five years involving a judicial reorganization, judicial liquidation or debt enforcement procedure (foreclosure or receivership), the economy receives a “no practice” mark on the time, cost and outcome indicators.

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Cost (% of estate)

The average cost of insolvency proceedings. The cost of the proceedings is recorded as a percentage of the estate’s value.

Disclaimer: If an economy had zero insolvency cases a year over the past five years involving a judicial reorganization, judicial liquidation or debt enforcement procedure (foreclosure or receivership), the economy receives a “no practice” mark on the time, cost and outcome indicators.More information

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Outcome (0 as piecemeal sale and 1 as going concern)

Recovery by creditors depends on whether the hotel business emerges from the proceedings as a going concern or the company’s assets are sold piecemeal.

Disclaimer: If an economy had zero insolvency cases a year over the past five years involving a judicial reorganization, judicial liquidation or debt enforcement procedure (foreclosure or receivership), the economy receives a “no practice” mark on the time, cost and outcome indicators.

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Strength of insolvency framework index (0-16)

The index is the sum of four component indices: commencement of proceedings index, management of debtor’s assets index, reorganization proceedings index and creditor participation index.

Disclaimer: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.” It is the same disclaimer that is added at the bottom of the page

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Commencement of proceedings index (0-3)

The index measures what type of proceedings (liquidation, reorganization or both) debtors and creditors can initiate and what standard is used to declare a debtor insolvent.

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Management of debtor's assets index (0-6)

The index tests provisions on continuation and rejection of contracts during insolvency, avoidance of preferential and undervalued transactions and post-commencement credit.

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Reorganization proceedings index (0-3)

The index measures whether and how creditors vote on a reorganization plan and what protections are available to dissenting creditors.

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Creditor participation index (0-4)

The index tests creditors’ participation in and their rights during liquidation and reorganization proceedings.

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East Asia & Pacific..38.8232.52.721.8..6.82.23.10.81.4
Europe & Central Asia..51.0638.32.313.2..9.72.43.91.71.7
Latin America & Caribbean..39.2531.22.916.6..7.22.33.10.51.8
Middle East & North Africa..31.7827.53.013.8..5.42.13.10.11.2
OECD high income..76.6872.31.79.0..12.12.85.31.72.2
South Asia..31.1431.82.610.1..4.52.11.30.30.7
Sub-Saharan Africa..30.3220.03.023.1..6.32.24.10.41.1
Afghanistan 16023.6226.52.025.00.03.02.00.00.01.0
Albania 4263.4242.32.010.00.013.03.05.03.02.0
Algeria 7347.6750.81.37.00.06.53.02.00.51.0
Angola 1890.000.0no practiceno practiceno practice0.02.04.00.00.0
Antigua and Barbuda 12535.0036.03.07.00.05.02.02.00.01.0
Argentina 9542.8724.52.812.00.09.52.54.02.01.0
Armenia 7148.0036.91.911.00.09.03.02.03.01.0
Australia 1481.6982.11.08.01.012.02.56.00.53.0
Austria 1878.8982.71.110.01.011.02.55.51.02.0
Azerbaijan 8444.6839.51.512.00.07.52.53.01.01.0
Bahamas, The 6152.9363.53.012.01.06.02.03.00.01.0
Bahrain 8544.2841.62.59.50.07.02.04.00.01.0
Bangladesh15526.3625.84.08.0..4.0..0.00.00.0
Bangladesh - Dhaka ..26.3625.84.08.00.04.02.02.00.00.0
Bangladesh - Chittagong ..26.3625.84.08.00.04.02.02.00.00.0
Barbados 3469.5965.41.815.01.011.02.54.51.03.0
Belarus 6948.3837.63.022.01.09.02.05.50.51.0
Belgium 1084.0089.30.93.51.011.52.56.01.02.0
Belize 8145.2155.02.022.51.05.02.01.00.02.0
Benin 11238.0818.54.021.50.09.02.05.50.51.0
Bhutan 1890.000.0no practiceno practiceno practice0.02.01.00.02.0
Bolivia 9243.2739.81.814.50.07.02.53.00.51.0
Bosnia and Herzegovina 3866.4236.33.39.00.015.03.06.03.03.0
Botswana 5654.6663.81.718.01.06.53.02.50.01.0
Brazil6252.6822.44.012.0..13.0........
Brazil - São Paulo ..52.6822.44.012.01.013.02.55.52.03.0
Brazil - Rio de Janeiro ..52.6822.44.012.01.013.02.55.52.03.0
Brunei Darussalam 9841.0547.22.53.50.05.02.02.00.01.0
Bulgaria 4858.9334.03.39.00.013.02.54.02.54.0
Burkina Faso 11238.0818.54.021.00.09.02.05.50.51.0
Burundi 14530.467.25.030.00.08.52.54.01.01.0
Cabo Verde 1890.000.0no practiceno practiceno practice0.02.04.00.00.0
Cambodia 8245.118.36.028.00.013.03.04.03.03.0
Cameroon 11836.4615.52.833.50.09.02.05.50.51.0
Canada 1681.3687.30.87.01.011.02.54.51.03.0
Central African Republic 14928.130.04.876.00.09.02.05.50.51.0
Chad 14928.130.04.060.00.09.02.05.50.51.0
Chile 5854.1831.03.214.50.012.02.54.52.03.0
China5555.4336.21.722.0..11.5........
China - Shanghai ..55.4336.21.722.00.011.53.05.02.51.0
China - Beijing ..55.4336.21.722.00.011.53.05.02.51.0
Colombia 3072.0670.01.78.51.011.03.05.51.51.0
Comoros 1890.000.0no practiceno practice0.00.02.05.50.51.0
Congo, Dem. Rep. 1890.000.0no practiceno practiceno practice0.02.05.50.51.0
Congo, Rep. 11537.7517.93.325.00.09.02.05.50.51.0
Costa Rica 8744.0626.73.014.50.09.53.05.00.51.0
Côte d'Ivoire 7647.0335.12.218.00.09.02.05.50.51.0
Croatia 5953.9230.53.114.50.012.03.04.03.02.0
Cyprus 1779.0471.41.514.51.013.03.04.52.53.0
Czech Republic 2277.7366.02.117.01.013.53.05.53.02.0
Denmark 984.7887.81.04.01.012.03.06.01.02.0
Djibouti 6848.6538.12.311.00.09.02.05.50.51.0
Dominica 12934.0328.44.010.00.06.02.02.00.02.0
Dominican Republic 15923.709.23.538.00.06.02.02.00.02.0
Ecuador 14828.4017.95.318.00.06.02.02.00.02.0
Egypt, Arab Rep. 11936.3626.92.522.00.07.02.03.00.02.0
El Salvador 7945.9033.03.512.00.09.02.04.00.03.0
Equatorial Guinea 1890.000.0no practiceno practice0.00.02.05.50.51.0
Eritrea 1890.000.0no practiceno practiceno practice0.02.04.00.01.0
Estonia 4065.2840.03.09.00.014.02.55.52.04.0
Ethiopia 11437.8129.63.014.50.07.02.04.00.01.0
Fiji 8943.7646.51.810.00.06.02.02.00.02.0
Finland 193.8190.10.93.51.014.53.06.02.53.0
France 2476.0977.51.99.01.011.03.06.01.01.0
Gabon 12036.2915.25.014.50.09.02.05.50.51.0
Gambia, The 11138.2727.62.014.50.07.53.03.00.51.0
Georgia 10140.2439.92.010.00.06.01.53.50.01.0
Germany 391.9383.71.28.01.015.03.06.03.03.0
Ghana 16121.8823.21.922.00.03.02.01.00.00.0
Greece 5456.2834.93.59.00.012.02.55.53.01.0
Grenada 1890.000.0no practiceno practiceno practice0.02.02.00.01.0
Guatemala 15327.3027.53.014.50.04.02.00.00.02.0
Guinea 10838.8419.93.88.00.09.02.05.50.51.0
Guinea-Bissau 1890.000.0no practiceno practice0.00.02.05.50.51.0
Guyana 15625.5518.43.028.50.05.02.02.00.01.0
Haiti 1890.000.0no practiceno practice0.00.02.00.00.01.0
Honduras 13931.6718.23.814.50.07.02.04.00.01.0
Hong Kong SAR, China 2675.0687.20.85.01.09.03.03.01.02.0
Hungary 6550.5841.72.014.50.09.02.55.00.51.0
Iceland 1581.6584.91.03.51.011.52.56.01.02.0
India  13632.5925.74.39.0..6.0........
India - Mumbai ..32.5925.74.39.00.06.02.03.00.01.0
India - Delhi ..32.5925.74.39.00.06.02.03.00.01.0
Indonesia7746.4831.21.921.6..9.5........
Indonesia - Jakarta ..45.8230.02.022.00.09.53.05.00.51.0
Indonesia - Surabaya ..48.8335.61.520.00.09.53.05.00.51.0
Iran, Islamic Rep. 14031.5718.04.515.00.07.02.03.00.02.0
Iraq 1890.000.0no practiceno practiceno practice0.02.02.00.01.0
Ireland 2078.4487.70.49.01.010.03.04.51.51.0
Israel 2972.4762.12.023.01.012.53.05.52.02.0
Italy 2376.1463.11.822.01.013.53.05.53.02.0
Jamaica 3569.0864.51.118.01.011.02.54.51.03.0
Japan293.7592.90.63.5..14.0........
Japan - Tokyo ..93.7592.90.63.51.014.03.06.03.02.0
Japan - Osaka ..93.7592.90.63.51.014.03.06.03.02.0
Jordan 14630.1727.03.020.00.05.02.02.00.01.0
Kazakhstan 4758.9742.81.515.00.011.53.06.00.52.0
Kenya 14430.6427.94.522.01.05.02.02.00.01.0
Kiribati 1890.000.0no practiceno practiceno practice0.02.00.00.02.0
Korea, Rep. 490.3183.61.53.51.014.52.56.03.03.0
Kosovo 16320.3037.72.015.00.00.00.00.00.00.0
Kuwait 12235.9532.04.210.00.06.02.03.00.01.0
Kyrgyz Republic 12634.6638.31.515.00.04.53.00.01.50.0
Lao PDR 1890.000.0no practiceno practiceno practice0.02.02.00.50.0
Latvia 4363.3948.11.510.00.012.02.55.02.52.0
Lebanon 13433.0732.43.015.00.05.02.02.00.01.0
Lesotho 11737.3528.82.620.00.07.03.03.00.01.0
Liberia 1684.548.43.042.50.00.00.00.00.00.0
Libya 1890.000.0no practiceno practiceno practice0.02.04.00.01.0
Lithuania 7048.0642.82.310.00.08.02.54.00.51.0
Luxembourg 8045.4543.82.014.50.07.02.53.00.51.0
Macedonia, FYR 3767.7344.61.810.00.014.03.06.02.03.0
Madagascar 12734.2411.43.08.50.09.02.05.50.51.0
Malawi 16419.2012.42.625.00.04.02.02.00.00.0
Malaysia 4562.4981.31.010.01.06.02.02.00.02.0
Maldives 13533.0249.71.54.00.02.02.00.00.00.0
Mali 10040.3522.73.618.00.09.02.05.50.51.0
Malta 8344.7839.63.010.00.07.52.52.00.03.0
Marshall Islands 1679.1917.12.038.00.00.00.00.00.00.0
Mauritania 1890.000.0no practiceno practiceno practice0.02.05.50.00.0
Mauritius 3965.9467.41.714.51.09.53.04.00.52.0
Mexico2873.0368.91.818.0..11.5..0.00.00.0
Mexico - Mexico City ..73.0368.91.818.01.011.52.55.51.52.0
Mexico - Monterrey ..73.0368.91.818.01.011.52.55.51.52.0
Micronesia, Fed. Sts. 11637.663.25.338.00.011.52.56.03.00.0
Moldova 6053.8530.42.815.00.012.02.54.02.53.0
Mongolia 8943.7617.44.015.00.011.02.56.00.52.0
Montenegro 3668.2148.31.48.00.013.50.06.03.02.0
Morocco 13033.8928.13.518.00.06.02.04.00.00.0
Mozambique 6649.6334.11.520.50.010.02.54.01.52.0
Myanmar 16220.3914.75.018.00.04.02.02.00.00.0
Namibia 9742.2234.92.514.50.07.53.02.00.52.0
Nepal 8644.1941.52.09.00.07.02.04.01.00.0
Netherlands 1183.7788.91.13.51.011.52.56.01.02.0
New Zealand 3171.4183.31.33.51.08.53.03.00.52.0
Nicaragua 10340.1333.92.214.50.07.02.02.00.03.0
Niger 12136.0114.75.018.00.09.02.05.50.51.0
Nigeria14330.6828.02.022.0..5.0........
Nigeria - Lagos ..30.6828.02.022.00.05.02.02.00.01.0
Nigeria - Kano ..30.6828.02.022.00.05.02.02.00.01.0
Norway 685.7192.50.91.01.011.52.55.01.03.0
Oman 10539.2838.14.03.50.06.02.03.00.01.0
Pakistan9442.9639.22.75.6..7.0........
Pakistan - Karachi ..43.2439.72.84.00.07.02.03.00.02.0
Pakistan - Lahore ..42.4238.22.58.50.07.02.03.00.02.0
Palau 16616.2830.32.022.50.00.00.00.00.00.0
Panama 13233.5827.62.525.00.06.02.02.00.02.0
Papua New Guinea 13831.7524.23.023.00.06.02.03.00.01.0
Paraguay 10240.1819.53.99.00.09.52.54.01.02.0
Peru 7447.5730.33.17.00.010.03.03.50.53.0
Philippines 5356.8121.42.732.00.014.53.05.53.03.0
Poland 3270.4358.33.015.01.012.53.06.02.51.0
Portugal 884.7973.42.09.01.014.53.05.53.03.0
Puerto Rico (U.S.) 784.8470.52.511.01.015.03.06.03.03.0
Qatar 5158.3956.22.822.01.09.02.06.00.01.0
Romania 4659.7732.73.310.50.013.53.06.02.52.0
Russian Federation5158.3941.72.09.0..11.5........
Russian Federation - Moscow ..58.1641.32.09.00.011.52.55.01.03.0
Russian Federation - Saint Petersburg ..58.9242.71.89.00.011.52.55.01.03.0
Rwanda 7247.8219.22.529.00.012.03.06.00.03.0
Samoa 13333.2318.22.038.00.07.52.53.01.01.0
San Marino 10639.1546.62.35.00.04.51.52.01.00.0
São Tomé and Príncipe 15823.739.36.222.00.06.02.04.00.00.0
Saudi Arabia 1890.000.0no practiceno practiceno practice0.02.00.00.00.0
Senegal 8843.8529.23.020.00.09.02.05.50.51.0
Serbia 5058.5230.32.020.00.013.52.56.03.02.0
Seychelles 6352.4139.32.011.00.010.02.55.00.52.0
Sierra Leone 14230.8110.82.342.00.08.02.03.00.03.0
Singapore 2774.8389.70.83.01.08.53.04.00.51.0
Slovak Republic 3370.0454.74.018.01.013.03.04.03.03.0
Slovenia 1283.3988.20.84.01.011.52.56.02.01.0
Solomon Islands 13731.8524.31.038.00.06.02.03.00.01.0
South Africa 4164.2935.32.018.00.014.53.06.02.53.0
South Sudan 1890.000.0no practiceno practiceno practice0.02.52.00.52.0
Spain 2575.8371.21.511.01.012.03.06.02.01.0
Sri Lanka 7846.4045.61.710.00.07.02.53.00.51.0
St. Kitts and Nevis 1890.000.0no practiceno practiceno practice0.02.54.51.03.0
St. Lucia 10938.7342.92.09.00.05.02.02.00.01.0
St. Vincent and the Grenadines 1890.000.0no practiceno practiceno practice0.02.54.51.03.0
Sudan 15426.4531.72.020.00.03.02.01.00.00.0
Suriname 12834.218.45.030.00.09.52.54.01.02.0
Swaziland 9642.6338.62.014.50.07.03.02.00.02.0
Sweden 1978.7576.62.09.01.012.03.06.01.02.0
Switzerland 4462.6046.63.04.50.012.03.04.01.04.0
Syrian Arab Republic 15725.1517.74.116.00.05.02.02.00.01.0
Taiwan, China 2178.4181.81.94.01.011.03.05.50.54.0
Tajikistan 14729.0436.51.79.00.03.01.51.00.50.0
Tanzania 9941.0121.03.022.00.09.53.04.00.52.0
Thailand 4958.8442.52.736.01.011.52.04.02.53.0
Timor-Leste 1890.000.0no practiceno practiceno practice0.02.56.01.02.0
Togo 9343.1227.93.015.00.09.02.05.50.51.0
Tonga 13133.6027.62.722.00.06.02.03.00.01.0
Trinidad and Tobago 6748.9727.12.525.00.011.02.54.51.03.0
Tunisia 5754.5352.01.37.00.08.52.05.50.01.0
Turkey 12435.0918.74.514.50.08.03.02.01.02.0
Uganda 10439.8039.12.229.51.06.02.53.00.50.0
Ukraine 14131.058.32.942.00.08.53.04.00.51.0
United Arab Emirates 9143.7429.03.220.00.09.02.04.00.03.0
United Kingdom 1382.0488.61.06.01.011.03.05.01.02.0
United States590.1280.41.58.2..15.0........
United States - New York City ..90.7481.51.57.01.015.03.06.03.03.0
United States - Los Angeles ..89.2078.61.510.01.015.03.06.03.03.0
Uruguay 6452.3742.11.87.00.09.52.56.01.00.0
Uzbekistan 7547.2441.32.010.00.08.02.53.00.52.0
Vanuatu 11038.6342.72.638.01.05.02.02.00.01.0
Venezuela, RB 16519.056.44.038.00.05.02.02.00.01.0
Vietnam 12335.8320.15.014.50.08.03.03.02.00.0
West Bank and Gaza 1890.000.0no practiceno practice0.00.02.02.00.01.0
Yemen, Rep. 15128.0823.13.015.00.05.02.02.00.01.0
Zambia 10738.9637.52.49.00.06.02.02.00.02.0
Zimbabwe 15227.4416.13.322.00.06.03.02.00.01.0

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