In 2018, there were 1466 bankruptcy petitions filed in Estonia, of which 67% were bankruptcy petitions of natural persons. However, only 644 bankruptcies were declared, of which 84% were natural persons. Nearly half of the bankruptcy petitions in Estonia end with an abatement of bankruptcy proceedings. The average bankruptcy procedure for a legal person lasts for 3.5 years and for a natural person for 1.2 years. On average, only 14% of claims of legal persons are satisfied through bankruptcy proceedings. In order to make the insolvency proceedings faster, more efficient and transparent, which in turn would increase the disbursements to obligees and improve the Estonian business climate, the Ministry of Justice carried out an insolvency law review.
The study analysed six possible regulatory changes proposed as a result of the insolvency review. The results were briefly summarised as follows.