Changing the rules—Insolvency (Amendment) Rules 2015

Changing the rules—Insolvency (Amendment) Rules 2015

With the Insolvency (Amendment) Rules 2015 having come into force from 1 October 2015, Susan Kelly of Squire Patton Boggs considers what this will mean for insolvency practitioners and the lawyers who advise them.

What are the main provisions of the Insolvency (Amendment) Rules 2015?

With the implementation of the Insolvency (Amendment) Rules 2015, SI 2015/443, IPs seeking to charge on a time costs basis in an administration, creditors’ voluntary liquidation (CVL), compulsory liquidation or bankruptcy, must provide creditors with an upfront estimate of their fees. The estimate has to be approved by creditors (including any subsequent increase in that estimate) prior to the IP being entitled to draw any funds from the insolvency. (Please see Squire Patton Boggs' earlier blog post—Tick Tock: What Fees Are On The Clock? Increased Scrutiny Of Insolvency Practitioners’ Fees In England And Wales)

The new rules also mean that the High Court will be able to transfer winding-up cases to the County Court at Central London.

Will these likely be successful in achieving their aim?

The aim of the new estimating process is to provide greater transparency for creditors and trust in the insolvency system. The

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.