EU Insolvency Law: Harmonisation Directive enters info force

Introduction

On 1 April 2026, the long-awaited Directive harmonising certain aspects of insolvency law (the Directive) entered into force. The Directive covers five pillars:

1. Avoidance actions
2. Pre-pack proceedings
3. Duty to file for insolvency
4. Creditors’ Committees
5. Asset tracing

The aim of the Directive is to work towards harmonisation of these pillars of substantive insolvency law across EU Member States, not only in cross-border cases but also in domestic cases.  Member States now have until 22 January 2029 to transpose the majority of its provisions it into national law. 

Proposed by the Commission in 2022 (as we covered here) the Directive aims to provide for new minimum rules to improve predictability of insolvency proceedings in each member state for creditors and investors; it does not set out a standard set of harmonised insolvency rules that each member state must enact in the same way. Instead, the Directive allows Member States to implement (or keep) rules that go above the standard the Directive sets, as long as it provides for greater protection for the general body of creditors. 

What’s next?

The proposal will now be sent to the Council for approval. If no amendments are made by the Council, the Directive will be adopted. Afterwards, the Directive will be published in the Official Journal and will enter into force the day after publication. 

Member states will have until 22 January 2029 to transpose the majority of its provisions into national law.

For a more detailed explanation of the Directive's key pillars and their main implications for Germany, the Netherlands, France and Spain, please read our briefing here.  For the text of the Directive, see here.