Latest Cases

The Consumer IVA Protocol

Posted: 5th June 2021

An updated Consumer IVA Protocol 2021 has been published by the UK Insolvency Service. The new protocol contains a set of general principles and the following annexures –

(1) Standard terms and conditions for use in protocol compliant IVAs (Annex 1).

(2) Legal and regulatory framework (Annex 2).

(3) Template letter for consumers (Annex 3).

(4) Template proposal and table of contributions (Annex 4).

(5) Flowchart to explain the process for potential equity release (Annex 5).

(6) Table of distributions (Annex 6).

(7) Comparison table between bankruptcy and IVA expected outcomes (Annex 7).

(8) Terms of Reference (Annex 8).

The protocol is a voluntary agreement which does not override the legal and regulatory framework applicable to insolvency practitioners, but does provide a standard framework for insolvency practitioners and creditors when dealing with consumer IVA’s. Please click here to read the press release on the Protocol by the UK Insolvency Service. Please click here to go to our pages on personal bankruptcy and IVA’s.

Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill

Posted: 5th June 2021

Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill – The UK government has announced that it is to legislate, in this new bill introduced to Parliament,for new powers to tackle unfit directors who have dissolved their companies leaving staff or taxpayers out of pocket. The legislation will be retrospective and enable the directors of dissolved companies to be investigated where the dissolution process has been used by company directors to avoid repaying company bounce back loans and the dissolution process has been misused. The new powers of investigation include relevant sanctions such as disqualification from acting as a company director for a period of up to 15 years. Such powers to be exercised by the Insolvency Service on behalf of the Business Secretary. The measure will also prevent directors of dissolved companies setting up nearly identical businesses after the dissolution leaving company creditors unpaid. Please click here to see the UK government press release on this topic. Also look at our pages on company insolvency by clicking here.

Debt Respite Scheme (Breathing space) – Guidance for creditors

Posted: 1st June 2021

The UK government has published guidance to creditors for the Debt Respite Scheme (Breathing Space) which can be found here. The guidance came into force on 4th May 2021 and the breathing space is intended to assist debtors by giving legal protections from their creditors under The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.

There are two types of breathing space: a standard breathing space (available to anyone with a problem debt giving legal protection from creditor proceedings for up to 60 days) and a mental health crisis breathing space (only available to a person receiving mental health crises treatment and lasts as long as the treatment plus 30 days ( no matter how long the srises treatement last).

Company insolvency and statutory demands

Posted: 1st June 2021

The restriction on statutory demands and winding-up petitions to protect companies from creditor enforcement action due to debts related to coronavirus expires on 30th June 2021 and it remains to be seen whether the UK government will extend those restrictions beyond that date. A link to the UK government support page can be found here.

Statutory declarations and members voluntary liquidations.

Posted: 1st May 2020

Under the current temporary practice direction supporting the insolvency practice direction a statutory declaration in support of a solvent winding up may be sworn using a video link i.e. virtually and the fact that it is sworn using a video link shall not by itself be regarded as causing substantial injustice to invalidate the relevant insolvency proceedings (see paragraph 9 of the temporary practice direction which is in force until 1st October 2020).