The Insolvency Service has today (26 September) released a consultation document detailing a set of proposals aimed at “simplifying and reordering” existing Insolvency Rules.
Bringing together 24 Statutory Instruments, the proposals intend to put in place a “single set of rules fit for the 21st Century”, as well as making common provision for processes, such as meetings of creditors, that apply across different insolvency procedures, to make things easier for users.
Graham Horne, deputy chief executive of The Insolvency Service, said: “We have listened to our stakeholders and want to modernise the Insolvency Rules so that they are easier to understand and apply.
“This consultation is a great opportunity for people who use the Rules to help us ensure they are fit for modern needs.”
The new set of rules includes written information requirements designed to use electronic submission rather than relying on statutory forms, resulting in “a more logical structure to improve clarity and consistency.”
Current Insolvency Rules have been in place since 1986, providing the framework for the Insolvency Act 1986.
The draft rules anticipate some of the policy changes from the Government-wide ‘Red Tape Challenge’ proposals announced in July 2013, including proposals to change the need for creditor meetings and contact.
Structural changes proposed include creating a single set of rules and reordering the rules on “more logical and clearer lines.”
The consultation on the proposed new rules will close on 24 January 2014.