Revised Timetable for Commencement of the new Insolvency Rules

1. For the reasons set out below it has become necessary to put the timetable for commencement of the new Insolvency Rules (and the other instruments that fall within the scope of the project) back by a year, until 1 October 2009.    

Consultation with Stakeholders

2. In December 2007 the Insolvency Service’s public consultation in relation to a proposed Legislative Reform Order (LRO) was completed. The proposals therein have largely arisen as a result of work that has been undertaken within the Modernisation and Consolidation project and set out our proposals to make various changes to the Insolvency Act 1986 and the Company Directors Disqualification Act 1986 (CDDA). We are now in the process of reviewing responses received in relation to each individual LRO proposal to determine which proposals may be put before Parliamentary Scrutiny Committees later in 2008. Any changes made to this primary legislation would need to come into force at the same time as the new Insolvency Rules if we are to maximise the benefits that the Insolvency Rules will make possible.  

3. Work on the preparation of the new Insolvency Rules has progressed. Drafts of the new rules were delivered to The Insolvency Rules Committee (IRC) in December 2007. The new Rules are sizeable, include revisions to the structure and contain numerous detailed changes to the existing provisions to address many practical issues that have been raised by the insolvency profession and other users of the legislation. The work the IRC need to undertake represents a substantial undertaking and we now anticipate that they shall not have completed that work until late 2008.

Insolvency Statutory Forms

4. We have also been working with lawyers to make revisions to the 260-odd insolvency forms that are prescribed by the Insolvency Rules. We have liaised closely with Companies House regarding the implementation of relevant Companies Act 2006 provisions and other system changes required to accommodate the delivery of over 60 insolvency forms to the Registrar of Companies. In November 2007 Companies House announced that implementation of relevant Companies Act provisions was being put back from October 2008 to October 2009 and they now advise that system changes required for receipt of our new insolvency forms will also take place within that extended timeframe.

Other Instruments

5.  In the coming months we shall be carrying out a targeted consultation in relation to revised drafts of both the Insolvent Partnerships Order and the Administration of Insolvent Estates of Deceased Persons Order. We shall also proceed with the preparation of the new Company Directors Disqualification Rules, the Insolvency Regulations, the Insolvency Proceedings (Monetary Limits) Order/ Regulations and the Companies (Disqualification Orders) Regulations. To assist users of the legislation we are planning to make available on The Insolvency Service’s website copies of the new Insolvency Rules and all the other new statutory instruments well in advance of the revised commencement date of 1 October 2009.  

Any enquiries regarding the above should be directed towards Neil Ogilvie, Policy Unit, Area 5.7, 21 Bloomsbury Street, London WC1B 3QW; e-mail Neil.Ogilvie@insolvency.gsi.gov.uk