The New Insolvency Rules 2017
The new Insolency Rules will come into force on 6th April 2017.
The major changes are:-
- They adopt and extend use of e-mail communication and website document portals.
- Abolition of requirements to hold meetings (but not in all circumstances).
- Ability for creditors to opt not to receive certain notices.
- Debtors with claims of less than £1,000 do not need to file a proof.
- Deemed consent of IP’s decision unless 10% in value or number, or 10 creditors object.
- Corporate; filed Statement of Affairs need not contain details of creditors who are employees, ex-employees or consumer customers.
- Bankruptcy; enables the appointment of an IP as an interim receiver after the presentation of a creditor’s bankruptcy petition.
- Bankruptcy; repeals the automatic requirement for a bankrupt to produce a Statement of Affairs following a creditor’s bankruptcy petition.
- Abolition of receiver and manager function of OR so that the OR will become trustee in bankruptcy on the making of a bankruptcy order unless the Court appoints someone else.
The Rules contain many other amendments which will feature as a topic in our IP seminar next year.