Parliament has fast-tracked a major overhaul of Fiji’s 81-year-old bankruptcy system, referring the new Personal Insolvency, Financial Rehabilitation and Entrepreneurial Rescue Bill 2025 to the Standing Committee on Justice, Law and Human Rights for urgent review next year.
The Bill aims to give struggling individuals and small business owners a clear path to recover financially, with what Government calls a “modern approach to personal insolvency”.
Acting Attorney-General Siromi Turaga said the proposed law introduces faster, simpler and more humane mechanisms for dealing with debt.
“The Bill introduces a modern approach to personal insolvency, promoting the fresh start principle to help honest debtors return to economic productivity,” he told Parliament.
The Bill targets Micro, Small and Medium Enterprises whose owners operate unincorporated or partnership businesses.
It creates flexible options including debt restructuring arrangements, debt rehabilitation orders and a 60-day debt protection moratorium.
Mr Turaga said the reforms offer a second chance to entrepreneurs and replaces the outdated system under the Bankruptcy Act of 1944.
He said the new framework would reduce stigma and finality of financial failure and support people who act as honest debtors.
The Bill also aims to stabilise credit markets by introducing simplified and streamlined procedures that speed up repayment where possible.
Opposition MP Faiyaz Koya supported its referral to committee, saying its timing aligned with earlier discussions on MSMEs.
“It is probably very timely … we have not got a problem with it,” he said after a preliminary review.
Mr Turaga said the Bill had been refined extensively before reaching Parliament.
“Timely is what we have delivered here… it is a great encouragement for small businesses.”
The Bill will return to Parliament next year after committee scrutiny.
