Insolvency technical update – August 2022
By Steven Wood, Practice Support Specialist (Insolvency)
8 September 2022
Insolvency technical update – your round-up of recent developments in insolvency
Coronavirus (Recovery and Reform) (Scotland) Act 2022
The Coronavirus (Recovery and Reform) Scotland Act (the "Act") received royal assent on 10 August 2022.
The June insolvency technical update sets out the measures in the Act that will impact insolvency and restructuring from 1 October 2022.
Scottish Government Consultation: Scotland's statutory debt solutions and diligence - policy review response
The Scottish Government has published a consultation seeking views on its proposals for reforms to the Scottish statutory debt solutions and debt recovery mechanisms (diligence).
The proposals put forward are in response to recommendations arising from stakeholder-led policy reviews that have now concluded.
Responses to the consultation are invited by 7 October 2022.
Call for evidence: Review of the personal insolvency framework
As reported in last month’s technical update, the Government has issued a call for evidence to aid its review of the personal insolvency framework in England and Wales.
The call for evidence is open until 24 October 2022 and ICAS will be submitting a response. Views and comments to feed into that response are welcome and should be emailed to swood@icas.com in the first instance.
Dear IP
Dear IP 149 has been issued by the Insolvency Service. The issue provides details of corrections made to previous Dear IP issues that contained duplicate article number errors.
Changes to creditor bankruptcy and compulsory liquidation petition deposit (E&W)
The deposits to be paid for creditor bankruptcy and compulsory liquidation, where a petition is filed at court on or after 1 November 2022 are to be increased. The new fee rates being introduced through the Insolvency Proceedings (Fees) (Amendment) Order 2022 are set out below:
| Current fee | Fee from 1 November 2022 | |
|---|---|---|
| Creditors’ bankruptcy petition deposit | £990 | £1,500 |
| Company liquidation petition deposit | £1,600 | £2,600 |
Payment Protection Insurance (PPI) after bankruptcy
The Insolvency Service has updated its guide to what happens to a PPI claim after someone has been made bankrupt in England and Wales. The Insolvency Service is now processing payments.
Legal update
Re Houst Limited [2022] EWHC 1941 (Ch): The first instance of a Part 26A restructuring plan being sanctioned for a small-to-medium enterprise (SME). The plan also used cross-class cramdown to compromise HMRC as preferential creditor.