Luxembourg insolvency law finds its legal basis in the Luxembourg Commercial Code as enacted on 15 September 1807 and the Insolvency Law of 2 July 1870. Since then, it has been amended by different legislation and Grand-Ducal regulations as well as judicial practice.Needless to say, insolvency law is a law of common sense. Trustees too often face situations that are not black or white and, guided by their common sense, they will have to face different legal challenges.EU law and regulations have changed insolvency in Luxembourg in various ways. Traditionally debtor-unfriendly, the law mainly focused on the liquidation aspect, rather than on a restructuring aspect. Initially, the law provided several mechanisms that allowed a limited restructuring of the debtor. Amongst those instruments are bankruptcy (faillite), controlled management (gestion contrôlée) and composition with creditors (concordat préventif de faillite).Since the introduction of the EU Directive on Restructuring and Insolvency (EU 2019/1023) on 7 August 2023, and other recent insolvency law reforms, Luxembourg has aimed to become a major restructuring hub with greater protections for creditors.