Revised insolvency practice direction now in force

Revised insolvency practice direction now in force

What are the important features of the latest insolvency practice direction?

Original news

New insolvency practice direction (access to LexisPSL subscribers only)

A new insolvency practice direction came into force on 29 July 2014. It states that it replaces all previous practice directions, practice statements and practice notes relating to insolvency proceedings with the exception of the Civil Procedure Rules 1998, SI 1998/3132 PD 49B (CPR)—Order under section 127 Insolvency Act 1986 which deals with contributories’ winding up petitions.

Much of the practice direction remains the same but there are a number of amendments which are outlined below. We have also created a comparison document to the previous practice direction which came into force on 23 February 2012.

New insolvency practice direction with tracked changes (access to LexisPSL subscribers only)

What is contained in the new insolvency practice direction?

The practice direction is set out in six parts:

  1. Part one: general provisions
  2. Part two: company insolvency
  3. Part three: personal insolvency
  4. Part four: Financial Markets and Insolvency (Settlement Finality) Regulations 1999—required information
  5. Part five: appeals
  6. Part six: applications relating to the remuneration of appointees

What are the changes to the insolvency practice direction?

Part one: general provisions

  • the definitions of 'Registrar' and 'Court' have been updated to include county court hearing centres—the definition for the 'Royal Courts of Justice' has also been updated to provide the Rolls Building address
  • the coming into force date has been amended to be 29 July 2014 (para 2.1) and includes the fact that the practice direction does not affect the Practice Direction relating to contributories’ winding up petitions (CPR PD 49B—Order under section 127 Insolvency Act 1986)
  • applications for an injunction before a judge have been updated to clarify that this relates to the court's inherent jurisdiction or pursuant to the Senior Courts Act 1981, s 37 or s the County Courts Act 1984, s 38—this does not apply to any 'order' made but to insolvent companies (para 3.2(3)) and insolvent individuals (para 3.3(2))
  • the court documents for

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