The importance of insolvency and insolvency proceedings for ensuring dynamic and safe economic development cannot be overestimated. From the point of view of economic development dynamizing, incurring debts (credit) is a desirable element of professional activity in the field of investing or increasing consumption. The proper regulation of insolvency also encourages lending, discourages ill-considered behaviour, obliges the creditor to look at and monitor the condition of the debtor (also for the purpose of restructuring). Ex post insolvency regulations should encourage the creation and maintenance of the maximum value of the debtor’s assets and fair submission to the rigours of the law, they should also provide an opportunity for a new opening and undertaking further activities by the debtor in a professional manner. The effectiveness of insolvency is conditioned by many factors, only some of which affect the legal regulation itself. Additional elements, such as: the legal culture, respect for the rules of law and honest and professionally conducted business, good judges, justice system infrastructure, tax and fiscal policy aimed at ensuring the stability of the financial system and supporting solving liquidity problems of entities acting in good faith seem to be crucial. In order to ensure its effectiveness, the regulation of insolvency should include, among others: an early warning system about the possible accumulation of unpaid debts, incentives for pre-court debt restructuring – with the need for court approval (e.g. if the majority of creditors, but not all, opt for novation), securing and seizing the debtor’s assets to maximize their value, access to full, and up-to-date debtor information. There is no effective insolvency without an effective system of justice.