Tuesday, 7 March 2017

INSOLVENCY LAW CHANGES

This is for insolvency law anoraks and anyone wishing to avoid reading 444 pages of the Insolvency (England and Wales) Rules 2016 SI 2016/1024. They come into force on 6 April 2017 along with parts of the Small Business, Enterprise and Employment Act 2015 and the Deregulation Act 2015, the net result being -

  • replacement of the Insolvency Rules 2016.
  • modernisation of insolvency practice and procedure.
  • permission to a liquidator and trustee in bankruptcy to pay out a creditor who is owed no more than £1,000 without the need for them to submit a formal claim so that reliance can be placed on the company's or bankrupt's statement of affairs or account records as to how much is owed and to whom.
  • makes the official receiver the trustee of the bankrupt's property as soon as a bankruptcy order is made (unless the court appoints the supervisor of a failed voluntary arrangement as trustee which it is empowered to do).
  • abolishes the final meeting of creditors.
  • removes meetings as the default mechanism for liquidators and trustees seeking decisions from creditors.

Wake up. It's time to go to bed!