Large Changes Ahead for the Insolvency Profession.
2015 sees the largest changes for the Insolvency profession in more than a decade.
There have been significant changes to insolvency legislation in 2015. The latest come into effect on 1 October and are summarised below:
Insolvency Act 1986 (Amendment) Order 2015 - increases the level of debt needed for creditors to start bankruptcy proceedings from £750 to £5000 for petitions presented on or after 1st October this year.
Insolvency (Protection of Essential Suppliers) Order 2015 – the list of essential suppliers who cannot make supply conditional upon the payment of pre-insolvency invoices is expanded to include most IT businesses.
Deregulation Act 2015 – a number of changes including:
• The SoS may require information directly from any person in relation to the conduct of a potentially unfit director.
• Authorisation of IPs by recognised professional bodies.
• A new regime for partial authorisation of Insolvency Practitioners
• Repeal of the Deeds of Arrangement Act 1914.
Small Business, Enterprise and Employment Act 2015 – a number of changesincluding:
• Power for administrators to bring a claim for fraudulent or wrongful trading.
• Power for liquidator or administrator to assign causes of action.
• Application of proceeds of office-holder claims.
Insolvency Practitioners (Amendment) Regulations 2015 – Insolvency Practitioners' record keeping simplified.
Insolvency (Amendment) Rules 2015 – Approved fee estimates required where seeking to charge on a time cost basis.
Statement of Insolvency Practice 1 – new SIP1 “Introduction to Statements of Insolvency Practice”
- Company voluntary arrangements
- Creditors voluntary liquidation
- Members voluntary liquidation
- Fraud and forensic investigations
- Litigation support
- Financial restructuring
- Individual voluntary arrangements
- Bankruptcy advice
- Informal arrangements