The new Chambers Global Practice Insolvency Guide 2025 aims to provide legal and non-legal professionals with a concise overview of the main restructuring and insolvency law topics in various jurisdictions. The experienced authors on restructuring and insolvency law describe the rules and practices applicable in their jurisdictions, as well as the latest (upcoming) developments. To provide an outline of the main elements, this Guide discusses the different liquidation, restructuring and insolvency procedures in each jurisdiction, as well as the main statutory officers and other actors within the systems.

Law and Practice

 1. Overview of Legal and Regulatory System for Insolvency/Restructuring/Liquidation

 1.1 Legal Framework

The general insolvency regime is regulated by the following:

• Commercial Code – Section III, Articles 437 to 614, dealing with stay of payments and insolvency
  proceedings;
  • New Insolvency Law – formally known as the Law of 7 August 2023 on the business preservation and modernisation of insolvency law (the “Law of 7 August 2023”);
  • Regulation (EU) 2015/848 – Regulation of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) (the “EU Insolvency Regulation (Recast)”), which replaces the previous Regulation (EU) 1346/2000 for insolvency procedures opened after 26 June 2017; and
  • Grand Ducal Regulation of 4 July 2025 regulating the electronic communication of documents and notifications in bankruptcy and reorganisation proceedings.

Specific Insolvency Regimes or Provisions

In addition to the general framework, specific insolvency regimes or provisions exist for the following sectors.

• Credit Institutions and Financial Professionals: Law of 18 December 2015 covers resolution, recovery and liquidation measures for credit institutions and certain investment firms, as well as deposit guarantee schemes and investor indemnification (as amended).
• Insurance and Reinsurance Undertakings: Law of 7 December 2015 governs the insurance sector (as amended).
• Regulated Investment Funds and Fund Managers:
  • Law of 15 June 2004 relates to investment companies in risk capital (SICAR) (as amended);
  • Law of 13 February 2007 on specialised investment funds (as amended);
  • Law of 17 December 2010 pertains to undertakings for collective investment (UCIs) (as amended); and
  • Law of 23 July 2016 on reserved alternative investment funds (RAIFs) (as amended).
• Regulated Securitisation Vehicles and Affiliates: Law of 22 March 2004 governs securitisation (as amended).   

Read more in the Law and Practice Luxembourg chapter of the Chambers insolvency 2025 Guide.