Parliament has moved quickly to modernize Fiji’s 81-year-old bankruptcy system by 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 in the coming year. This significant legislative overhaul aims to provide struggling individuals and small business owners with a structured path for financial recovery, described by the Government as a “modern approach to personal insolvency.”
Acting Attorney-General Siromi Turaga highlighted that the proposed law introduces faster and more compassionate mechanisms for addressing debt issues. He emphasized that the Bill promotes a “fresh start principle,” which is intended to assist honest debtors in regaining their economic footing. The legislation specifically targets Micro, Small, and Medium Enterprises (MSMEs) operating as unincorporated or partnership businesses.
The Bill establishes flexible options such as debt restructuring arrangements, debt rehabilitation orders, and a 60-day debt protection moratorium. Turaga noted that these reforms provide a second chance for entrepreneurs and aim to replace the antiquated framework established by the Bankruptcy Act of 1944. One of the key goals is to reduce the stigma associated with financial failure, creating an environment that supports individuals acting in good faith.
Furthermore, the proposed legislation intends to stabilize credit markets by streamlining and simplifying procedures, which will facilitate quicker repayment processes wherever feasible. Opposition MP Faiyaz Koya has expressed his support for the Bill’s referral to committee, suggesting that its timing aligns well with previous discussions regarding MSMEs. He indicated that there are no objections to the proposed changes.
Turaga concluded by reaffirming that the Bill had undergone extensive refinement prior to its introduction to Parliament, asserting that it represents a timely and significant boost for small businesses in Fiji. The Bill is expected to return to Parliament next year after the committee’s review is complete.
This overhaul signals a commitment to fostering a more supportive economic environment for small businesses, encouraging entrepreneurship, and promoting sustainable financial recovery for individuals in need.