The Corporate Insolvency and Governance Bill is widely expected to become law within the next month or so. When it does, it will have an immediate and significant effect on the law relating to company insolvency. It does not change the law on personal insolvency.

The Bill is 238 pages long. Its provisions are complicated and highly technical. The purpose of this article is to give a concise summary of the main changes being implemented, for those who are not necessarily used to dealing with insolvency issues on a regular basis.

This article does not provide legal advice nor should it be relied upon by anyone receiving it for the purpose of making decisions in relation to their business or otherwise. This article sets out some general concepts which may be relevant for business owners and managers to consider bearing in mind the current uncertain financial landscape.

Current Issues

The UK Jurisdiction Taskforce (“UKJT”) is one of six taskforces that make up the LawTech Delivery Panel established by the UK government, the judiciary and the Law Society of England and Wales as a collaborative discussion forum to promote the use of technology in the UK’s legal sector.

In May 2019 the UKJT issued a public consultation seeking to identify the principle issues over which there is perceived to be confusion regarding the status of cryptoassets and smart contracts under the law of England and Wales.

On 21 July 2016, an increase in the fees for bankruptcy and company insolvency came into force.

The new fees will apply to any petition which is lodged with the Adjudicator or filed with the court on or after 21 July 2016. The new fee structure will also apply to any bankruptcy order or compulsory winding up order made on or after this date.

The changes to existing fees and deposits are as follows:

For all corporate insolvencies starting on or after 6 April 2016 insolvency office-holders are now required to submit a report on the conduct of anyone who was a director of the insolvent company in the 3 years leading up to the insolvency, irrespective of their conduct. Currently, reports are only required where office-holders consider a director’s conduct makes them unfit to be involved in a company’s management in the future.

From 1 October 2015 the minimum debt in respect of which a bankruptcy petition can be presented is increased to £5,000.

The  following  changes  which  came  into  effect  on  1  October  2015  will  be  of  interest  to  insolvency practitioners and other professionals who deal with insolvency law:

All insolvency officeholders will be concerned about the increased uncertainty created by the recent case Re Calibre Solicitors (In Administration) concerning challenges to their remuneration and expenses.

We welcome the Government’s announcement today that the insolvency exemption to the Jackson reforms will remain in place for the foreseeable future, although it will be reviewed later in the year.

Following the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012, success fees under “No Win, No Fee” conditional fee agreements are generally no longer recoverable from opponents and neither are premiums under after the event (ATE) legal expenses insurance policies.

Is a pension pot beyond the reach of a trustee in bankruptcy? Conflicting High Court decisions reviewed below raise an interesting conflict between practical policy and strict technical interpretation

In both cases, the question was whether a trustee in bankruptcy can obtain an Income Payments Order (IPO) in respect of pension entitlements under a personal pension plan, where no election to draw the pension had been made prior to the Bankruptcy Order.