New insolvency rules: What are the changes and how will you be affected?


This Thursday sees the introduction of the Insolvency (England & Wales) Rules 2016 - which represents a major overhaul aimed at modernising and updating present procedures which have been in force for some 30 years, since the Insolvency Rules 1986. 

This will enable the office-holder (e.g. the Administrator or Liquidator, depending on the process) to use streamlined procedures and communication systems which should simplify and speed up processes, and as a result save expenses which come from the insolvency estate.

Potentially a positive thing for business owners and creditors!

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The Insolvency (England and Wales) Rules 2016 should be cautiously welcomed by the insolvency profession. Having been talked about for a number of years, they will finally come into force with effect from 6 April 2017. They represent the most significant legislative change to affect the insolvency profession in the three decades since the Insolvency Act was introduced in 1986, and consolidate the existing rules and their amendments into a single piece of legislation. At the same time, the language has been modernised and simplified, making them easier to read and follow. Separate insolvency rules for Scotland will be introduced later this year