Bankruptcy applications taken out of the courts? Reforms expected to come into effect in April 2016

11 Sep 2015

Every quarter, the Insolvency Service (IS) publishes a bulletin for interested parties. In this quarter’s newsletter, the IS states that applications for bankruptcy will cease to heard in the courts and instead will be moving to an online portal run by the Insolvency Service with effect from April 2016. Currently IS is testing the portal, which will be accessed via GOV.UK. If it is a government IT project we can all rest easy, assured of rapid and efficient completion of the project. Even allowing for delays on the IT “front”, the direction of travel away from the courts dealing with insolvency matters are clear.

The proposed reforms will be inserted in the Insolvency Act 1986 by the Enterprise and Regulatory Reform Act 2013. The detail is currently contained in the draft Insolvency Rules part 10 chapter 3 (IR 2016). It is HMGs current intention to bring IR2016 into force in October 2016. We shall see.

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