The Insolvency (England and Wales) Rules 2016 came into effect this month, replacing the Insolvency Rules 1986. The rules have been restructured, consolidated and modernised, with the intention of delivering efficiency savings through deregulation. The following is a brief round-up of some of the key features.
Statutory forms have been abolished. The rules themselves now stipulate requirements for various documents. Templates are published by the Insolvency Service at: https://www.gov.uk/government/collections/insolvency-service-forms-england-and-wales.
New decision making procedures have been introduced following the Small Business, Enterprise and Employment Act 2015.
Where a debtor’s books show a debt of less than £1,000, the office holder can notify the creditor of the intention to make a distribution and the debt is deemed proved if no objection is received.
Electronic communications are encouraged by removing the requirement of written consent to communication by e-mail and the requirement of the court’s permission to publication of notices online.
Creditors can now opt out of receiving most communications from office holders.
Details of creditors who are employees or consumers should now be omitted from statements of affairs to be filed and published and instead set out in a schedule.
The Insolvency Proceedings Practice Direction will be revoked and replaced in due course. The present position is that practices set out in the existing practice direction may be followed only to the extent that they do not contradict the new rules.
John Ditchburn / 26th Apr 2017
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