Starting 18 December 2025, Romania’s insolvency framework undergoes significant reform with the entry into force of Law No. 239/2025. The law, part of the Government’s fiscal reform package, was approved by the Constitutional Court and published in the Official Gazette.
The new legislation addresses weaknesses of the previous framework (last substantially reformed in 2022) and aligns insolvency procedures with the National Structural Budgetary Plan. Its main objectives are to shorten procedures, strengthen managerial accountability, improve debt recovery—especially public claims—and prevent abusive use of insolvency.
Temporal application of the law
Ongoing insolvency cases generally remain subject to the former rules. However, the law introduces more than ten specific exceptions whereby new procedural deadlines and obligations apply even to pending cases.
“Persons closely related to the debtor”
A new legal concept is introduced, covering relatives up to the third degree, affiliates, and members of management bodies. Transactions with such persons are subject to enhanced scrutiny, and asset transfers require court approval. Only one closely related person may sit on the creditors’ committee.
Extended managerial liability
Liability is no longer limited to formal directors but extends to any individual exercising actual decision-making control. Persons held liable may be banned for five years from founding or controlling companies and may be excluded from acting as special administrators.
Anti-abuse measures and protection of public claims
Judicial administrators must reassess the feasibility of reorganization every six months. Asset transfers to affiliated entities intended to avoid tax liabilities are explicitly sanctioned.
Procedural and practitioner-related changes
Success fees for insolvency practitioners are capped and restricted, while the digital random allocation system for judicial administrators is postponed until 15 April 2026.
Conclusion
Law No. 239/2025 signals a shift from a permissive insolvency regime to one focused on accountability, speed, and effective debt recovery.