Summary

Clarification on when the court should lift the administration moratorium in respect of litigation.

The Facts

Introduction

Amit has recently acted for an IP whose office is one of the largest appointment takers in the country. He appeared for the respondent at several hearings on an application to review a BTO.

Background

The out-going officeholder had his licence revoked by the IPA for misappropriation of monies, running to six figures, from numerous estates. This resulted in a BTO, which was granted by the Court on paper.

The Facts

The applicants, who had successfully appealed the rejection of their proof of debt by the liquidator of Burnden Group Limited, sought an order that the liquidator pay their costs of the appeal personally in circumstances where the relevant company had no assets and their costs exceeded £290,000 (including VAT).

The Decision

After a number of years of consultation the long awaited Insolvency (England and Wales) Rules 2016 will finally come into effect today.

The new regulations aim to provide a modern and concise guide for Insolvency Practitioners and other relevant stakeholders and will consolidate various amendments made to the original rules introduced in 1986.

If these intended reforms work, they will streamline the operation of Administrations and Liquidations.

When someone is made bankrupt, all property owned by them, at the date of bankruptcy, forms part of the bankruptcy estate. Property not only includes physical assets, such as goods, land and money, but also intangible assets, such as a cash balance with a bank, debts, benefits under contracts, legacies and causes of action. These assets are known as ‘things in action’. The bankruptcy estate vests in a trustee in bankruptcy upon appointment.

When you are focused on the day-to-day running of a business, it can be all too easy to miss the warning signs that you may be at risk of insolvency. Often, the signs might be interpreted as a “blip” or a “minor issue” paired with the assumption that the company can trade out of it. In this article, Stephen Young identifies some of the key warning signs that directors should be aware of.

The new Insolvency (England and Wales) Rules 2016 (SI 2016/1024) came into force on April 6, 2017 (the 2016 Rules). The 2016 Rules replace the Insolvency Rules 1986 (SI 1986/1925) and their 28 subsequent amendments (the 1986 Rules) and represent a continuation of the Insolvency Service’s recent efforts to modernize and implement policy changes under various pieces of primary legislation.

1. Introduction

The Insolvency Rules 1986 have been revoked and the Insolvency (England and Wales) Rules 2016 (IR 2016) come into force today. There are 22 Parts and 11 Schedules. Each Part is intended to cover a specific process or area, for example:

Key Points

The wait is almost over!

As reported in our recent blog Rules of Engagement for Creditors, the Insolvency Rules (England and Wales) 2016 (“IR2016”) are about to arrive heralding procedural reforms effective (subject to transitional provisions) on 6th April 2017.