The European Commission has launched several initiatives aimed at preventing bankruptcy and promoting a second chance for honest bankrupt entrepreneurs. As part of these initiatives, the European Commission commissioned this study, which collected country-specific information on the prevention of bankruptcy, discharge time and debt settlement, treatment of entrepreneurs post-bankruptcy, conditions for a second chance, and the role of credit rating agencies. The study had two objectives:
1) To provide the European Competitiveness Council with an update on the 3-year deadline on the discharge time and debt settlement for honest entrepreneurs.
2) To give policy officers a measuring mechanism to obtain insights how to reduce discharge times and improve simplicity of procedures.
PPMI carried out a case study on Lithuania.