The Insolvency Services has published a new consultation paper on proposed changes to insolvency regulation and practice. The consultation paper “Red Tape Challenge –changes to insolvency law to reduce unnecessary regulation and simplify procedures” was published on 18 July 2013. The proposals include:
Changes to the law governing insolvency processes, including the removal of meetings of creditors as the default option in all insolvency proceedings and streamlining the procedure for uncontested creditor’s winding up or bankruptcy petitions;
Changing the way insolvency practitioners report on a director’s misconduct; and
Technical changes to the regulations affecting insolvency practitioners including removing the requirement for insolvency practitioners to keep time records where remuneration is not on a time cost basis and removing the requirement for liquidators and trustees to obtain “sanction” (or permission) for certain actions in liquidation and bankruptcy.
The objective of the proposals is to identify cost savings in the administration of insolvency proceedings, to enable more money to be returned to creditors. The consultation paper is available on the Insolvency Service website. The deadline for responses to the consultation is 10 October 2013.
If you require more information please contact Richard Baines, head of Druces LLP’s Turnaround, Restructuring and Insolvency team or Rachel Brown, Solicitor, in Druces LLP’s Commercial Litigation team.