31 January 2017: Alan Limb from BRI’s Southampton office explains a change in Insolvency Legislation that will take effect shortly.
The senior members of the BRI team have more than 150 years’ cumulative experience between them in advising businesses in financial difficulty. For most of us, that has included working with the Insolvency Act and Rules 1986 which have set out what the law is and how it is applied in practice for the past 30 years. However, change is afoot as the Insolvency Rules will be amended from 6th April 2017 which will result in some radical alterations to how we work.
The aim is to reduce the amount of time and resources that we have to use in dealing with insolvency cases so that more money is available to creditors in the form of dividends. This includes:
- Face to face meetings of creditors will become the exception, rather than the rule:
- Greater use will be made of email and websites for communicating with creditors;
- Creditors will be able to opt out of correspondence; and
- Creditors whose claims are under £1,000 will no longer have to submit a formal proof of debt to receive a dividend.
Thankfully, the changes were announced last October so we will have had some time to prepare by the time they take effect. What will remain the same is our desire to provide the best advice for the businesses we are asked to assist, irrespective of the outcome for us. If you or your clients have any queries about the implications of the new Insolvency Rules, please contact us.