Revised Practice Direction on Insolvency Proceedings comes into force

Revised Practice Direction on Insolvency Proceedings comes into force

A revised version of the Practice Direction on Insolvency Proceedings (PDIP) came into force on 4 July 2018, replacing the version that had come into force on 25 April 2018. The latest version corrects a number of issues that existed in the April 2018 version.

Why did the Practice Direction on Insolvency Proceedings need to be revised?

According to the press release published by the Courts and Tribunals Judiciary on 5 July 2018, the amended PDIP updates the April 2018 version by clarifying the position on a few areas of complexity, including the interaction with the Business and Property Courts Practice Direction around the allocation of specialist insolvency work in the South-East in particular, as well as building flexibility for specialist insolvency work to be able to be transferred out to local hearing centres if the specialist judge deems there are the resources and expertise there to deal with it. The updated PDIP still includes the original updates, including reference to the Insolvency (England and Wales) Rules 2016, SI 2016/1024, taking account of recently decided cases and changes in the CPR (in particular with regards to the Practice Direction—Business and Property Courts), specifying new arrangements for the distribution of insolvency business across the different levels of the judiciary, and clarifying the routes of appeal in insolvency cases.

For further reading on the changes brought in by the April 2018 version of the PDIP, see blog post: New Insolvency Proceedings Practice Direction.

What changes have been made to the PDIP?

As mentioned above, the revised PDIP came into force on 4 July 2018. Although it is substantially the same as the version that came into force on 25 April 2018, the following changes (other than to incorrect cross-references and numbering and other minor amendments) should be noted:

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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.