Are you prepared for October changes?

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There have been plenty of changes to insolvency legislation this year. The following are the latest coming into effect on 1 October 2015.

  1. Insolvency (Protection of Essential Suppliers) Order 2015 – inserts new s.233A into the Insolvency Act 1986 which expands the list of essential suppliers who cannot make supply conditional upon the payment of pre-insolvency invoices to include most IT businesses.
  2.  Insolvency Act 1986 (Amendment) Order 2015 – increases minimum level of debt needed for creditors to commence bankruptcy proceedings from £750 to £5000 for petitions presented on or after 1 October 2015.
  3. Deregulation Act 2015 – several changes, including:
  • A new regime for partial authorisation of Insolvency Practitioners.
  • Authorisation of IPs by recognised professional bodies.
  • Repeal of the Deeds of Arrangement Act 1914.
  • The SoS may require information directly from any person in relation to the conduct of a potentially unfit director.
  1. Small Business, Enterprise and Employment Act 2015 – several changes including:
  • 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.
  1. Statement of Insolvency Practice 1 – new SIP1
  1. Insolvency Practitioners (Amendment) Regulations 2015 – Insolvency Practitioners’ record keeping simplified.
  1. Insolvency (Amendment) Rules 2015 – Approved fee estimates required where seeking to charge on a time cost basis.

For further information, help or advice please contact Andrew Cawkwell on 0191 211 7957 or [email protected].