Shake-up on way for insolvency rules
Businesses and individuals affected by insolvency are set to benefit from moves to bring insolvency rules into the 21st century.
In a consultation document published on 26 September, the Insolvency Service proposes streamlining 24 different rules and regulations and harmonising processes, such as meetings of creditors, which apply across different insolvency procedures, to make them more user-friendly. The proposals also include:
- reorganising the rules on more logical and clearer lines.
- improving consistency to make the rules easier to understand
- using plain English
- making it easier for documents to be delivered electronically.
The Insolvency Service’s deputy chief executive Graham Horne said: “We want to modernise the insolvency rules so that they are easier to understand and apply. This consultation is a great opportunity for people who use the rules to help us ensure they are fit for modern needs.”
The current rules have been in force since 1986 and provide a framework for the Insolvency Act 1986, setting out requirements for the majority of insolvency procedures.
The consultation, which closes on 24 January 2014, is aimed at insolvency practitioners, judges, lawyers and people involved in insolvency issues, such as creditors and debtors.