Insolvency Q&A

Personal bankruptcy is governed by the Bankruptcy Law, Cap 5 and the Bankruptcy Rules, Cap 6. Corporate insolvencies and reorganisations are governed by the Companies Law, Cap 113. Section 203 of the Companies Law provides two methods of winding up, namely:

• compulsory winding up by the court; and
• voluntary winding up, which may be either a members’ winding up or a creditors’ winding up.

The definition of a debtor given in section 3(2) of the Bankruptcy Law gives jurisdiction to the courts to adjudicate bankrupt all persons residing in Cyprus, whether Cypriot or not, provided they have committed one of the acts of bankruptcy set out in section 3(1) of the Bankruptcy Law.