All change for the Insolvency Rules?

27 Sep 2013

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The Insolvency Service is proposing to consolidate and replace the Insolvency Rules 1986 and is also taking the opportunity to modernise them and reorder the whole structure on more logical and clear lines. It has issued a consultation on the proposals, which closes on 24 January 2014.

Consultation: Insolvency Rules 1986—Modernisation of rules relating to insolvency law

What is the consultation seeking to achieve?

The Insolvency Service has been working to modernise and consolidate the Insolvency Rules 1986, SI 1986/1925. Rather than simply consolidating the existing rules and amendments, the Insolvency Service is looking to modernise and recast the rules and reorder the whole structure on more logical and clearer lines.

What is the significance of the consultation?

The significance of the consultation is that the Insolvency Service is seeking to reorder and modernise the Insolvency Rules, to take into account the many changes to them, the Insolvency Act and other relevant legislation and practice since they came into force in 1986. With the government’s “red tape challenge”, the Insolvency Service sees this as a perfect opportunity to modernise and reorder the rules, taking into account the many amendments that have been made to them over the past 25. It is seeking input from the end users of the legislation—creditors, representative organisations, insolvency practitioners, their legal advisers and others to assist with this process.

What could this mean for insolvency practitioners?

Only time will tell. It appears practice may not change a great deal, but more the reference points will. The Insolvency Service wants to bring about a more modern and fit -for-purpose rules, so this could be a positive for practitioners.

What should lawyers do next?

Lawyers who are interested in this should read the consultation and the draft rules before feeding back to the Insolvency Service. The deadline for submitting comments is 24 January 2014.

Filed Under: Insolvency , Market news , Reform