1.  The drafting of the Insolvency Rules has advanced to a stage where 20 draft Parts have been prepared for the new Rules and despatched to targeted consultees for review and comment by 31 March 2007. 

2.  On 7 December 2006 The Insolvency Service Policy Unit met with the Honourable Mr Justice David Richards and members of The Insolvency Rules Committee and reviewed the new structure and initiatives for both the consolidated Insolvency Rules and also the merged Disqualification Rules. Policy Unit now propose to deliver a complete version of the draft consolidated Insolvency Rules (including drafts of prescribed forms) to The Insolvency Rules Committee in June 2007.  

3.  Steps have been taken in the drafting of the consolidated Insolvency Rules to modernise the Rules, to reduce burdens on users, to better meet their needs, and to provide costs savings in the administration of insolvencies with the aim of improving returns for creditors. Key initiatives advanced through the new draft Rules include: 

• Restructuring of the existing Parts 1, 4 and Parts 7 to 13 to improve the organisation of provisions, to delete unnecessary provisions and to remove certain provisions relating to court records;

• Modernisation initiatives including the introduction of new provisions to allow insolvency documents and notices to be sent electronically to consenting creditors and to make provision in relation to the publication of insolvency documents through the use of websites by insolvency practitioners and official receivers;

• Publicity of insolvency events based on mandatory Gazetting with insolvency practitioners and official receivers being given discretion to decide whether additional publicity is appropriate in a particular case and if so by what medium;

• Some reduction in the requirements to file documents at court has been achieved, including deletion of the existing Part 7 provision which currently requires all insolvency Gazette notices and advertisements to be filed at court;

• Greater flexibility in agreeing the basis on which insolvency practitioner remuneration can be taken and improved transparency and accountability to creditors;

• Replacement of affidavits by witness statements, with resultant cost savings for users;  

• To protect bankrupts and IVA debtors, who can satisfy the court that they are at risk from violence, new provisions have been introduced for the court to order that the current address of a victim of violence shall not be disclosed on the Individual Insolvency Register;

• The creation of 10 new Common Parts containing provisions of general application, principally to Administration, Liquidation and Bankruptcy, in the following areas: Public Examination; Special Manager; Secured Creditors; Creditors’ and Liquidation; Committee; Disclaimer; Remuneration and Reporting to Creditors; Meetings; Claims by and Distributions to Creditors; EC Regulation; Proxies and Company Representation. 

4. Departmental Lawyers are now working on the drafting of 8 further amended statutory instruments which are to be consolidated within the project; namely: 

• The Insolvent Partnerships Order 1994;

• The Insolvency Regulations 1994;

• The Insolvency Proceedings (Fees) Order 2004;

• The Insolvency Proceedings (Monetary Limits) Order 1986;

• The Administration of Insolvent Estates of Deceased Persons Order 1986;

• The Insolvency Practitioners and Insolvency Services Account (Fees) Order 2003;

• The Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987;

• The Insolvent Companies (Reports on Conduct of Directors) Rules 1996;

• The Companies (Disqualification Orders) Regulations 2001;  

It is anticipated that the project will achieve an outcome of 9 consolidated statutory instruments, with The Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987 and The Insolvent Companies (Reports on Conduct of Directors) Rules 1996 being merged into a single set of Rules.  

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