As it is known the effective act on bankruptcy, liqudation and voluntary dissolution was adopted in 1991 in Hungary. Nevertheless there have been modifications on this act since then, the new economic conditions require a more appropriate regulation of this field. The author presents a thorough summary on the critical points of the valid regulation. He applies a comparative method by referring to the legal solutions of different European countries concerning this branch of law and underlines that there are even significant terminological differences between the Hungarian regulation and e.g. the regulation of the EU-countries. This circumstance itself would demand modification of the law of bankruptcy in Hungary with respect to the join of Hungary to the European Union. The author mentions examples of the everyday practice of bankruptcy and liquidation, which can also prove the necessity of creating a new act on this issue. He puts high emphasis on the role and activity of the liquidator (trustee in bankruptcy). Finally the article attempts to outline those essential elements of this branch of law, which should be taken into consideration during the codification of the new act on bankruptcy, liquidation and insolvency.