New Insolvency Law Gives Struggling Businesses a Second Chance

Businesses in Belize facing financial trouble will soon have more options to recover under the new Insolvency and Bankruptcy Act, 2025. The law replaces the more than 120-year-old Bankruptcy Act and introduces modern rules for both individuals and companies.

The Financial Services Commission (FSC) said the new framework “modernises Belize’s insolvency framework and represents a significant step toward strengthening the country’s financial and economic resilience.”

The Act establishes FSC oversight of insolvency practitioners, creates transparent liquidation procedures, and introduces rescue mechanisms for struggling businesses.

A simplified regime for micro, small, and medium-sized enterprises has also been designed to offer targeted relief that protects jobs and supports continuity. Implementation will roll out in phases from September 2025 to October 2026, covering corporate restructuring, bankruptcy offences, and cross-border cooperation.

The FSC said the reform aligns Belize with international best practices and follows the country’s acceptance into the International Association of Insolvency Regulators.