The Insolvency Rules 2016 came into force on the 6th of April 2017. The new rules replace the Insolvency Rules 1986 and their 28 subsequent amendments.
The rules have been recast to reflect modern business practice and to make the insolvency process more efficient, the changes include:
- enabling electronic communications with creditors
- removing the automatic requirement to hold physical creditors meetings, although creditors will be able to request meetings
- enabling creditors to opt-out of further correspondence and for small dividends to be paid by the officeholder without requiring a formal claim from creditors
- new provisions allowing an officeholder to treat small debts as proved
- automatic appointment of Official Receiver as the first trustee immediately upon the making of a bankruptcy order
- no requirement for the OR to summon a creditors meeting
The 2016 Rules have also removed the use of statutory forms for insolvency proceedings (the rules now clearly prescribe the necessary contents of documents) in an attempt to make them “future proof”.
Applications and petitions filed before the 6th April 2017 will continue to be governed by the 1986 Rules.
Please note that statutory demands for bankruptcy are now issued under Part 10 of the Rules, not Part 6. Statutory demand template forms have been amended to reflect this change
Please be aware that there are a new statutory demand form and a new petition for winding up for all actions after the 6 April 2017.
Certificates of service for winding up petitions, bankruptcy petitions and personally served statutory demands will now refer to whether service was effected before or after 16.30 hours, in accordance with CPR, as opposed to 16.00 hours as previously.
Statutory demands served by letterbox will now need to specify a date on which it is believed the demand will come to the attention of the debtor, and this date will be the deemed date of service.