We have written a series of daily updates following the Insolvency Rules 2016, which came into force on 6 April 2017.
Insolvency Rules 2016 - Debt Relief Orders
The procedure for Debt Relief Orders ("DRO") is unchanged, possibly because it is a comparatively new process having only come into force in 2009. However there has been some shuffling of rules numbers, in an effort to regularise and make the structure more logical.
Insolvency Rules 2016 - Application for income payments orders and income payments agreements
The rules relating to income payment orders ("IPO") and income payment agreements ("IPA") are largely unchanged. The time periods dictated in the old rules for IPOs and IPAs remain the same, however there are some added requirements in the new rules, particularly in relation to the contents of notices and orders.
Insolvency Rules 2016 - Remuneration of Officeholders
Rules 18.15 to 18.38 of the Insolvency Rules 2016 deals with remuneration principles, fixing of remuneration, challenges by creditors and applications to Court by officeholders in relation to their remuneration placing all the rules surrounding remuneration in one place as opposed to dotted around the various procedures in the old rules.
Insolvency Rules - Disclaimer
The Rules relating to Disclaimer remain largely unchanged, except for bankruptcy and liquidation being included in the same section and some minor updates to the Act. These are incorporated in Rule 19.8, and affect s.307 and s.320 Insolvency Act 1986. The deadlines for all actions remain unchanged.
Insolvency Rules - Expedited Petitions, Provisional Liquidation and Validation Orders
It will be rare that an expedited petition is appropriate - the case law concerns instances where only compulsory liquidation is possible for a type of entity but the usual process would cause significant prejudice to creditors, e.g. credit unions.
Amendments to the Insolvency Act 1986 from 6 April 2017
As well as the new Insolvency Rules coming into force on 6 April, there are over 100 amendments to the Insolvency Act that will come into force as well. These amendments are provisions from the Small Business, Enterprise and Employment Act 2015 ("SBEEA") and the Deregulation Act 2015 ("DA"), and are designed to facilitate and run alongside the new Rules.
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