It is the 6th April - new reforms now in force - £45 million saved!!

The 6th of April 2010 heralds the coming into force of a number of new insolvency reforms which the Insolvency Service predict will save approximately £45 million. Their press release notes:

"A package of measures aiming to modernise and streamline insolvency legislation come into force today.

Insolvency Practitioners will see the changes modernising the insolvency rules to reflect modern business practises as well as reduce costs and administrative burdens. It is estimated that the changes, along with those made last year, will save the industry an estimated £45 million a year.

For creditors there will be better returns from insolvency procedures as Insolvency Practitioners are able to save money by taking advantage of electronic communication. They will also benefit from greater transparency in respect of Insolvency Practitioner fees, information on which will be provided to them in regular reports.

From today, it is easier for a bankrupt to obtain an “annulment” of their bankruptcy order in circumstances where they can pay the bankruptcy debts and expenses using third party monies or by means of a subsequent remortgage of property. In addition the changes make it possible for individual debtors who are facing bankruptcy and who may be at risk of violence to apply for limited disclosure of their home address.

The Insolvency Service is committed to continuous improvement of the Insolvency Rules. In taking forward these modernisation changes we have worked closely with the insolvency profession and other stakeholders and have provided regular updates to Insolvency Practitioners and others who will be affected by the changes.

The following statutory instruments have been laid in Parliament and come into force on 6 April 2010:-

The Legislative Reform (Insolvency)(Miscellaneous Provisions) Order 2010 (2010 No.18);
The Insolvency (Amendment) Rules 2010 (2010 No.686);
The Insolvency (Amendment)(No 2) Rules 2010 (2010 No.734);
The Insolvency (Scotland) Amendment Rules 2010 (2010 No 688)."

Picture Credit: Insolvency Service.