The main law governing insolvency issues in Latvia is the Insolvency Law (Maksātnespējas likums)

The types of proceedings available are as follows:

On 6 January 2017, another package of large-scale amendments to the Insolvency Law came partly into force. The main part of the amendments to the Insolvency Law comes into force on 1 July 2017 and thereafter.

Generally speaking, wrongful trading is the special form of liability where a director of a company is liable for damages towards the creditors for the mismanagement of an insolvent company.

A special feature of the institution of wrongful trading is, that it may give rise not only to the liability of the director of the company but also to the liability of the director, management, employee of the parent company or even of the grandparent company (so called shadow director).