KINGSTON, Jamaica — The Private Sector Organization of Jamaica (PSOJ) has suggested that the government remove the word ‘bankruptcy’ from the title of the new Bankruptcy and Insolvency Act.

In a submission to the joint select committee of Parliament reviewing the provisions of the new bill Thursday, March 27, the PSOJ said there is a stigma attached to “personal bankruptcy and corporate insolvency”.

“We have tried to ensure that the draft bill is consistent with this guiding philosophy and that, as far as possible without adversely affecting the interests of other stakeholders, that this stigma is reduced,” the PSOJ said.

“With that objective in mind, we had recommended that the name of the legislation should be the Insolvency Act,” PSOJ noted.

Jamaica’s legislation on bankruptcy and insolvency is contained in two Acts — the Bankruptcy Act, which covers personal and individual insolvency; and the Companies Act, which deals with the winding up of insolvent corporate bodies.

The current Bankruptcy Act dates back to the 1880s, and has been the subject of ad hoc amendments over the years. The procedural rules of the Act are not only considered outdated, but also in conflict with the rules that govern other court proceedings.

The current law also does not address the stigma of personal bankruptcy, and does not make provisions for the rehabilitation or the re-organisation of the business affairs of debtors.

The Bankruptcy and Insolvency Act 2014 seeks to consolidate legislation relating to bankruptcy, insolvency, receiverships, provisional supervision and winding up. It also provides for corporate and individual insolvency; rehabilitation of an insolvent debtor; repeal of the Bankruptcy Act; and amendments to the Companies Act.