The most recent Insolvency Rules (IR) came in to place on 6th April 2017, with the intention of modernising and streamlining the initial process. This involved cutting costs on insolvency, as well as consolidating previous amendments, and ensuring that the language used is both modern and gender-neutral for the people of England and Wales.
Under the Insolvency Rules 1986 (Amended on 6th April 2017) came the abolition of statutory forms, which were replaced by specific forms, where prescribed information could be contained.
The changes to the new IR include:
- Electronic communications are now permitted, as long as consent is obtained.
- It is no longer a requirement to attend physical meetings with creditors.
- Creditors may opt out of further correspondence.
- Office holders are permitted to make a payment of less than £1,000 before the creditor formally submits a claim.
- The role of trustee for the making of a bankruptcy order should automatically fall to the Official Receiver, unless the court appoints a supervisor instead.
- Office holders are permitted to publish notices on website after obtaining consent from the creditors, without obtaining a court order.
- The Official Receiver is not required to summon a creditors meeting.
Any applications made prior to 6th April 2017 comply with the IR 1986.