Explanatory note
(This note is not part of the Rules)
These Rules make a number of amendments to the Insolvency Rules 1986 (S.I. 1986/1925) (“the 1986 Rules”).
The amendments to the 1986 Rules are generally consequential on amendments made to the Insolvency Act 1986 (c. 45) by the Enterprise Act 2002 (c. 40).
Rules 2.55, 2.57, 3.21, 3.23, 4.159, 4.161, 6.156 and 6.158 are amended to remove references to persons subject to a composition or arrangement with their creditors in the restrictions on membership of a creditors' or liquidation committee. These Rules have also been amended to include within the restrictions persons subject to a bankruptcy restrictions order or bankruptcy restrictions undertaking or an interim bankruptcy restrictions order.
Rules 4.7 and 6.10 are amended to provide that a deposit must be paid to the court before a petition can be filed unless the Secretary of State has given written notice to the court that the petitioner has made arrangements to pay the deposit to the official receiver.
Rules 4.74, 4.75, 4.138, 6.97, 6.98, 6.99 and 6.146, are amended to remove the requirement for the official receiver, trustee or liquidator to have to send proof of debt forms to creditors unless so requested, and to revise the content of the form. There are consequential amendments to Forms 4.25 and 6.37.
Rules 4.124, 4.125, 4.231, 6.136, 6.37 are amended and Rules 4.125A and 6.137A are inserted to provide that a liquidator or trustee must notify all creditors before obtaining release from office, unless the Court relieves them of that obligation.
Rules 4.127, 4.128, 4.148A, 6.138 and 6.139 are amended and Rules 4.127A, 4.127B, 4.148B, 6.138A and Schedule 6 are inserted to make provisions as to the payment of remuneration of trustees and liquidators consequential on the amendments made to the Insolvency Regulations 1994 (S.I. 1994/2507). Originally the Rules made provision for the payment of remuneration of liquidators and trustees in certain circumstances on the basis set for the official receiver under the Insolvency Regulations 1994. The entitlement to remuneration for the official receiver in those circumstances is revoked by the Insolvency (Amendment) Regulations 2004 with the result that the substance of the revoked provisions is now repeated in the Insolvency Rules 1986. Transitional provisions provide for the application of the former basis for remuneration to cases which are already on foot at the date these Rules come into force.
Rules 4.218 and 6.224 are amended to provide for fees payable under section 415A (inserted into the Insolvency Act 1986 by section 270 of the Enterprise Act 2002) to rank as expenses payable in the same order of priority as those currently payable under the orders made in accordance with the powers in sections 414 and 415 of the Insolvency Act 1986.
Rule 5.43 is amended to provide that claims of associates are to be disregarded when calculating those creditors voting against an individual voluntary arrangement proposal.
Rules 5.60 and 6.213 are amended to remove the requirement for the payment of the costs of advertisement of a bankruptcy annulment order and to require a request for an advertisement to be made within 28 days of the order. Consequential changes are made to Forms 5.7, 5.8 and 6.71.
Rule 6.214A is amended to require the court to endorse the notice under section 279(2) of the Insolvency Act 1986 with the date of filing in order to make clear the date when discharge from bankruptcy is obtained under this section. There is a consequential amendment to Form 6.82.
Rule 6.237CA is inserted to make provision in accordance with section 313(2B) in accordance with section 283A (2) for the early revesting of a bankrupt’s interest in his sole or principal residence.
Rule 6.237D is amended to provide in accordance with section 313(2B) for the matters which a court shall disregard when determining the value of the bankrupt’s interest for the purposes of Rule 6.237D(6)(c). There is a related amendment to Form 6.79A.
Rule 6A.5 is amended to correct errors in text inserted by S.I. 2003/1730 and Rule 6A.6 is amended to require more detailed information about the bankrupt to allow for more effective and targeted use of the bankruptcy restrictions register, and to bring this into line with the requirements in respect of the individual insolvency register.
Form 6.84 is amended to correct an error and insert a requirement to state the registered title number of the property, where applicable.
Minor amendments are made to Forms 2.8B, 2.9B, 2.11B, 2.25B and 6.28—
Additional paragraph numbered 8 stating that the notice has been sent to any relevant person in accordance with Rule 2.20(2).
Revised wording at paragraph 8 to reflect requirements of paragraph 28(1)(b) of Schedule B1.
Revised to include registered office of company.
Additional lines inserted for name and signature of creditor.
Revised to incorporate a questionnaire requesting additional details of an individual’s assets and liabilities.
The costs to business of the commencement of the provisions of the Enterprise Act 2002 are set out in the Regulatory Impact Assessment prepared for the Act. Copies of the assessment are available from the Policy Unit, The Insolvency Service, 21 Bloomsbury Street, London WC1B 3QW.