Reform in the law of bankruptcy

Abstract

The scope behind this thesis is not that of an exhaustive reform of the law of Bankruptcy, but more so an examination of some concepts and principles found in foreign laws which could be adapted to Maltese conditions. Our law on Bankruptcy was enacted in 1857, and since then has not been amended, despite .several suggestions made by Prof. Debono. In 1926 Prof. Mallia, in his Draft Code, put forward various suggestions and inovations, which however, never became law and to which reference will continuously be made in this Thesis. The first Chapter of this Thesis examines the concept of Bankruptcy as it exists in Maltese law. The reason for this, is that the definition given by our legislator has been the subject of great discussion among the Maltese legal profession as to its exact meaning, mainly because our law does not use the same terminology found in foreign codes. Our law provides only for Bankruptcy proceedings and does not provide for any alternative procedures. Now, it is a known fact that throughout its life, a commercial enterprise may, as it is generally often the case, encounter some difficulties.