International insolvency law in the new Hungarian PIL code - a window of opportunity to enact the UNCITRAL model law on cross-border insolvency?

The aim of this paper is threefold. First, it is demonstrated that private international law (“PIL”) in Hungary, in its current state, is unsuitable to adequately address cross-border insolvency situations. Second, it is analysed whether the reform proposal on the new PIL legislation improves the adequacy of the legal framework. Third, the argument is made that the enactment of the UNCITRAL Model Law1 (the “Model Law”) would beneficially contribute to establishing a functional international insolvency law in Hungary. In Section 2, the question is examined whether international insolvency falls within the material scope of the existing PIL framework of Hungary. In Section 3, the adequacy of those rules is addressed. Section 4 focuses on the insolvency aspects of the legislative proposal on the new Hungarian private international law. Finally, in Section 5, it is argued that the enactment of Model Law would adequately fill the regulatory gap that appears to be left open by the legislative proposal. The analysis focuses on corporate insolvency and disregards those classes of debtors which are subject to industry-specific legal regimes