The EU Insolvency Harmonisation Directive introduces common minimum standards across key areas of insolvency law, including avoidance actions, pre-pack proceedings, asset tracing, creditors' committees and directors' duties. Published in the Official Journal of the EU on 1 April 2026, the Directive aims to make insolvency proceedings across the EU more predictable, transparent and efficient.
This guide provides practical, jurisdiction-by-jurisdiction commentary on the Directive's core pillars and what they mean in practice. It combines an overview of the EU framework with detailed analysis across Belgium, France, Germany, Italy, Luxembourg, Portugal, Spain and the Netherlands, examining how each jurisdiction compares with the new EU standard and where legislative change may be required.
Which are the key pillars of the Directive?
Avoidance actions
The Directive harmonises the rules for challenging pre-insolvency transactions detrimental to creditors, introducing minimum look-back periods of three months for preferential transactions, twelve months for transactions at no or manifestly inadequate consideration, and two years for acts intentionally detrimental to creditors. Currently, national regimes vary widely in how closely they already align.
Pre-pack proceedings
The Directive introduces a harmonised two-phase framework for pre-pack sales, comprising a confidential preparation phase overseen by an independent monitor and a subsequent liquidation phase in which the sale is approved and executed. For several jurisdictions, this represents a significant innovation.
Asset tracing
A key innovation of the Directive is the introduction of enhanced cross-border asset tracing tools for insolvency practitioners, including access to bank account registers through BARIS, beneficial ownership information and other national registers on a non-discriminatory basis. Insolvency practitioners may gain greater visibility of assets located across different Member States, supporting more effective recovery efforts.
Creditors' committees
The Directive introduces harmonised rules designed to support effective creditor participation in insolvency proceedings, including the right to request a committee, defined functions and protection from personal liability except in cases of intentional misconduct or gross negligence. Reform requirements will vary significantly between jurisdictions, particularly where no comparable framework currently exists.
Directors' duties
The Directive requires directors to file for insolvency proceedings no later than three months after they became aware, or could reasonably be expected to have become aware, of the company's insolvency, subject to civil liability for non-compliance. Businesses should assess whether existing governance processes will remain adequate once national implementation measures are introduced.
What happens next?
Member States must transpose the Directive into national law by 22 January 2029, with a later deadline of 10 July 2029 for provisions enabling cross-border bank account access through BARIS.
While the final landscape will depend on national implementation choices, the direction of travel is now clear. Creditors, investors and businesses should use the transposition period to assess how the forthcoming changes may affect their activities across Europe.
Explore Linklaters’ guide for detailed jurisdiction-specific analysis of how these developments are expected to unfold and what they may mean in practice.
Authors:
- Laurens Cools, Partner, Brussels at Linklaters
- Mathieu Della Vittoria, Partner, Paris at Linklaters
- Borja Fernandez de Troconiz, Litigation, Arbitration & Investigations Partner, Madrid at Linklaters
- Nuno Ferreira Lousa, Partner, Head of Litigation, Arbitration and Investigations, Lisbon at Linklaters
- Riaz Janjuah, Restructuring & Insolvency Partner, Hamburg at Linklaters
- Paul Kuipers, Banking Partner, Amsterdam at Linklaters
- Melinda Perera, Capital Markets and Banking Partner, Luxembourg at Linklaters
- Alessandro Villani, Litigation, Arbitration & Investigations Partner, Milan at Linklaters
- Dr. Sabine Vorwerk, Restructuring and Insolvency Partner, Frankfurt at Linklaters
