New Insolvency Proceedings Practice Direction

New Insolvency Proceedings Practice Direction

Frances Coulson, senior partner at Moon Beever, highlights the key changes introduced by the new Insolvency Proceedings Practice Direction which came into force on 25 April 2018, and assesses what this means in practice for insolvency professionals.

Following the identification of a number of errors, it has been announced that the new Practice Direction will remain in force, despite being subject to future amendment. Although it was first announced that the Practice Direction had been withdrawn, it has been subsequently clarified that this is not the case. The Practice Direction therefore remains in force, subject to future amendments to correct the errors identified. The timing of when these amendments will be published and come into force will depend on whether the amendments require the approval of the Lord Chancellor.

In addition to the below analysis, a more detailed Practice Note on the changes contained in the Practice Direction will be published on LexisPSL Restructuring & Insolvency.

How does the new Practice Direction update the previous one?

The old Insolvency Proceedings Practice Direction (PD) was heavily out of step given the new Insolvency (England and Wales) Rules 2016, SI 2016/1024 (Insolvency Rules 2016) and various changes to the Civil Procedure Rules (CPR). I was pleased to work on the sub-committee of the Insolvency Court Users Committee working on this PD, chaired initially by former Chief Registrar Baister then Chief ICC Judge Briggs, with Mr Justice Norris, District Judge Anson, Catherine Addy QC and Matthew Watson of XXIV Old Buildings. The new PD took time partially because of its reliance on other Practice Directions which were concurrently in train, including the CPR Practice Direction 51O and the CPR Business and Property Courts Practice Direction.

What are the key points of change set out, and what will this mean in practice for insolvency professionals now?

Distribution of insolvency business

Aside from tidying up the PD to fit the new Insolvency Rules 2016 and CPR changes, one of the biggest changes is the new arrangements for the distribution of business, with welcome expanded jurisdiction of the In

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About the author:

Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.