40 Years of consumer bankruptcy law in continental Europe: A qualitative analysis on the absence of consumer bankruptcy in the Western Balkan countries

Abstract

There are 12 countries in Europe without any consumer bankruptcy legislation, and almost half of them are located in the Western Balkans. The only available solution for debt repayment in the region is the enforcement procedure. This article identifies the reasons behind the non-existence of consumer bankruptcy, and the challenges that Western Balkan countries face currently. Specifically, the article examines the rationale behind the need for consumer bankruptcy law enactment and the reasoning supporting the adoption of distinct consumer bankruptcy laws in the Western Balkans, encompassing economic, legal and cultural dimensions. Analysis of the absence of consumer bankruptcy legislation in the Western Balkans and the reasons behind it is terra incognita in the literature and the main contribution that the author offers. For this purpose, the author used qualitative research methods and conducted a qualitative study consisting of semi-structured one-on-one interviews with legal professionals, policymakers and enforcement officials using open-ended questions. The insights gained provide valuable implications for future consumer bankruptcy reforms in the region. The research contributes to the existing body of literature by offering a unique understanding of the phenomenon in European countries where currently there is no solution for debt adjustment.