Today (1 October 2015) brings about significant changes to the insolvency legislation, as many of the changes contemplated by various acts and statutory instruments, come into force.
A summary of the headline changes to the legislation are as follows:
- the bankruptcy level for debts has been increased from £750 to £5,000, meaning it will no longer be possible to serve a statutory or issue a bankruptcy petition on an individual unless the debt is £5,000 or more (for corporate insolvency the £750 level remains unchanged);
- administrators now have power to bring claims for fraudulent and wrongful trading (previously only liquidators could bring those claims); and
- a liquidator or administrator is able to assign causes of action, such as claims against the directors for wrongful trading, or antecedent transactions.
If you would like further information or details on the insolvency legislation, or would like to discuss any aspect of the recent changes, please contact Lee Ranford, partner, in the recovery and insolvency team.