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Many people probably think of corporate insolvency as the end of any company’s economic journey; however, the European Commission is taking steps to change that.

Instead, Commissioners in Brussels want corporate insolvency to represent a “second chance” for many businesses, allowing them to get back on their feet and continue trading after a temporary lull in performance.

Current EU rules governing cross-border insolvency date back to 2000, and the Commission now wants to update the legislation in favour of trouble-struck businesses.

EU Justice Commissioner Viviane Reding says: “1.7 million jobs are lost to insolvencies every year – we want to give honest companies and the people they employ a second chance.”

This move towards a “rescue and recovery” approach to company liquidation is expected to help around 50,000 companies each year across the EU as a whole.

However, many firms will still need detailed advice on company liquidation, and some will still not be saved under the new regime.

According to the European Commission, roughly a quarter of all company bankruptcies include a cross-border element, equivalent to around 150 every day across Europe.