In this article, we identify the determinants of firm insolvency for Peruvian firms that benefited from the insolvency procedure taken by the National Institute for the Defense of Competition and Intellectual Property (INDECOPI). Using a logistic model applied to 62 firms with and without insolvency during the period 1995-2007, we found some macroeconomic factors that affect the probability of firm insolvency of Peruvian firms such as the growth of the gross domestic product (GDP) of the industry, annual growth of inflation and the episodes of financial crises. Similarly, we found that only two financial indicators, highlighted by current literature, affect the probability of firm insolvency: the return on assets (ROA) and the solvency ratio, which indicates that economic and financial factors affect firm insolvency in Peru. © 2011 de Cladea.