Parliament in Fiji has prioritized a significant reform of its 81-year-old bankruptcy system by approving the Personal Insolvency, Financial Rehabilitation and Entrepreneurial Rescue Bill 2025, which has now been referred to the Standing Committee on Justice, Law and Human Rights for an expedited review next year.
The legislation aims to provide clear recovery pathways for individuals and small business owners facing financial difficulties, implementing what the Government describes as a “modern approach to personal insolvency.” Acting Attorney-General Siromi Turaga highlighted that the proposed law introduces faster, simpler, and more compassionate mechanisms for managing debt.
“This Bill promotes the fresh start principle to help honest debtors return to economic productivity,” Turaga stated in Parliament. It particularly focuses on Micro, Small, and Medium Enterprises (MSMEs) whose owners operate unincorporated or partnership businesses.
The Bill creates flexible options such as debt restructuring arrangements, debt rehabilitation orders, and a 60-day debt protection moratorium. Turaga emphasized that these reforms provide a vital second chance to entrepreneurs while replacing the outdated Bankruptcy Act of 1944. By fostering a supportive environment, the new framework seeks to alleviate the stigma associated with financial failure and assist individuals who act in good faith.
Moreover, the Bill aims to stabilize credit markets through simplified and streamlined procedures to expedite repayment when feasible. Opposition MP Faiyaz Koya expressed support for the Bill’s committee referral, noting the timing aligns well with previous discussions on MSMEs, stating, “It is probably very timely … we have no issues with it.”
Overall, the initiative is a promising step forward for small businesses in Fiji, encouraging economic resilience and providing essential support to those navigating financial challenges. With the Bill set to return to Parliament after committee review next year, it holds the potential to significantly reshape the landscape of financial recovery in the country.
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