Hungary

Draft new insolvency regulation

Dr. Erika Papp, Dr. Katalin Szecskay and Dr. Eszter Bernáth, Cameron McKenna, Budapest

In Hungary it is widely recognised that the current law regulating the bankruptcy regime (Act XLIX of 1991 on Bankruptcy Proceedings, Liquidation Proceedings and Member’s Voluntary Dissolution, ‘Old Bankruptcy Act’) no longer meets the requirements of a modern market economy. Since it came into force in 1992, it has been amended over 30 times and, with Hungary’s accession to the EU on 1 May 2004, further new regulations needed to be introduced.