Posted: Thursday, September 18, 2025. 8:25 am CST.
By Zoila Palma: The Financial Services Commission (FSC) has announced the enactment of the Insolvency and Bankruptcy Act, 2025, a landmark reform that repeals and replaces the century-old Bankruptcy Act, Chapter 244.
The new law modernizes Belize’s insolvency framework and is expected to strengthen the country’s financial resilience and economic stability.
The previous Bankruptcy Act, first enacted in 1902 and last amended in 1998, focused mainly on individual cases and provided limited options for businesses to recover or restructure.
The updated legislation introduces a comprehensive system covering both individuals and corporations, ensuring fairness, transparency, and alignment with international best practices.
Among its key features, the Act establishes regulatory oversight of insolvency practitioners under the FSC, creates clearer procedures for liquidation, and introduces rescue mechanisms to help viable businesses recover while protecting jobs. It also provides a simplified framework for micro, small, and medium-sized enterprises (MSMEs), modern rules for financial netting arrangements to reduce systemic risk, and provisions for cross-border cooperation to boost investor confidence.
Implementation of the Act will take place in five phases between September 2025 and October 2026. This phased approach is designed to allow for adaptation and stakeholder engagement, starting with foundational provisions this month and expanding to institutional structures, corporate insolvency, personal bankruptcy, and cross-border measures in the months ahead.
The reform comes as Belize was formally accepted into the International Association of Insolvency Regulators earlier this year, a move that underscores the country’s commitment to global cooperation and international standards.
According to the FSC, consultations, training, and public awareness campaigns will accompany the phased rollout to ensure that the new framework delivers on its promise of fairness, transparency, and economic resilience.
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The post Belize enacts modern Insolvency and Bankruptcy Act, 2025 appeared first on Belize News and Opinion on www.breakingbelizenews.com.
Posted: Thursday, September 18, 2025. 8:25 am CST. By Zoila Palma: The Financial Services Commission (FSC) has announced the enactment of the Insolvency and Bankruptcy Act,
The post Belize enacts modern Insolvency and Bankruptcy Act, 2025 appeared first on Belize News and Opinion on www.breakingbelizenews.com.
