IRRV Alert - week ending 12th October 2012

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"Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up": Government Response and Way Forward

 

 

 

 

10 October 2012

The Government yesterday published a response to its recent consultation “Reform of the Process to Apply for Bankruptcy and Compulsory Winding Up”.

Ministers have announced that the Government will reform entry into bankruptcy for debtor petitions only by replacing the court’s order-making role with a new administrative process involving bankruptcy applications instead being determined by a new Adjudicator. An amendment has been tabled to the Enterprise & Regulatory Reform Bill currently passing through Parliament to make the required legislative changes to the Insolvency Act 1986.

The Government response and a summary of consultation responses can be accessed via the following link on our website at:  http://www.bis.gov.uk/insolvency/Consultations/petition%20reform.

We would like to thank all those who responded to the consultation. Those responses have helped to inform the decision Ministers have taken. We will engage further and consult with key stakeholders over the coming months as work progresses on the detail of the new process and as we start to draft the supporting procedural rules that will be required.

Any queries should be directed to Tom Phillips on 020 7637 6421 or to tom.phillips@insolvency.gsi.gov.uk.

Policy Unit

The Insolvency Service

Tel: 020 7291 6740


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