Scope of a simplified insolvency regime

• Author: United Nations Commission on International Trade Law
• Pages: 6-6

6 UNCITRAL Legislative Guide on Insolvency Law for Micro- and Small Enterprises

B. Scope of a simplied insolvency regime

Application to all micro- and small enterprises

272. States should ensure that a simplied insolvency regime applies to all MSEs.

Aspects of the regime may dier depending on the type of MSE. (See recommenda-

tions 8 and 9.)

Comprehensive treatment of all debts of

individualentrepreneurs

273. States should ensure that all debts of an individual entrepreneur are

addressed in a single simplied insolvency proceeding unless the State decides to

subject some debts of individual entrepreneurs to other insolvency regimes, in

which case procedural consolidation or coordination of linked insolvency proceed-

ings should be ensured.

Types of simplied insolvency proceedings

274. States should ensure that a simplied insolvency regime provides for simpli-

ed liquidation and simplied reorganization. (See recommendation 2.)

C. Institutional framework

Competent authority and an independent professional

275. e insolvency law providing for a simplied insolvency regime should:

(a) Clearly indicate the competent authority; (See recommendation 13.)

(b) Specify the functions of the competent authority and any independent

professional used in the administration of simplied insolvency; and

(c) Specify mechanisms for review and appeal of the decisions of the competent

authority and any independent professional used in the administration of simplied

insolvency proceedings.