October 25 2016.



Modernised and consolidated insolvency rules have been laid in Parliament and will come into force on the 6th of April 2017. The new rules replace the Insolvency Rules 1986 and their 28 subsequent amendments. They have been developed working with the insolvency profession and have been approved by the Insolvency Rules Committee.

The rules have been recast to reflect modern business practice and to make the insolvency process more efficient. Changes include:

- enabling electronic communications with creditors

- removing the automatic requirement to hold physical creditors meetings, although creditors will be able to request meetings

- enabling creditors to opt out of further correspondence and for small dividends to be paid by the office holder without
requiring a formal claim from creditors

Further details will be available in the Explanatory Memorandum, which is published alongside the Rules. 

The rules will apply in England and Wales. A parallel project to modernise the Scottish insolvency rules is currently underway with the Scottish Government. Work continues on consequential amendments to other related legislation, including the Insolvent Partnerships Order.