The purpose of this paper is to analyse the legal framework governing pre-bankruptcy proceedings in the Republic of Croatia and to observe the amendments of the Bankruptcy Act governing pre-bankruptcy proceedings. Pre-bankruptcy proceedings are one of the instruments for restructuring business entities and preventing their complete bankruptcy, which can greatly affect the overall economic situation in the country. The paper includes an overview of the creditors' agreement with the debtor regarding the method of repayment and the amount of debt write-offs, and all existing procedures that must be applied in order for the pre-bankruptcy procedure to be performed in the best possible way. This paper also looks at the essential aspects of the course of pre-bankruptcy proceedings, its legislative development and processes, as well as the basic concepts of pre-bankruptcy proceedings as regulated under the currently valid Bankruptcy Act, which has experienced several amendments since its enactment in 2015. The paper also contains an example of a failed pre-bankruptcy procedure over a specific business entity in the Republic of Croatia. Furthermore, it also contains an analysis of how economic developments have affected the development of pre-bankruptcy proceedings, and gives an insight on whether respective legislative changes have indeed affected the number of companies that have been successfully restructured.