The Insolvency (Amendment) Rules 2009

Made: 10th March 2009

Laid before Parliament: 13th March 2009

Coming into force: 6th April 2009

The Lord Chancellor, in the exercise of powers under sections 411 and 412 of the Insolvency Act 1986, with the concurrence of the Secretary of State, and of the Chancellor of the High Court (by the authority of the Lord Chief Justice under sections 411(7) and 412(6) of that Act) in relation to those rules that affect court procedure, makes the following Rules:

Citation, commencement and interpretation

1

These Rules made be cited as the Insolvency (Amendment) Rules 2009 and come into force on 6th April 2009.

2

In these Rules—

• “the principal Rules” mean the Insolvency Rules 1986[^f00002] (any reference to a numbered Part or Rule is a reference to a Part or Rule so numbered in the principal Rules unless the context otherwise requires);

• “the Act” means the Insolvency Act 1986 (any reference to a numbered section being a reference to a section of that Act).

Transitional provisions

3

• (1) Subject to paragraph (2), the amendments made by Rules 5 to 31, 33 to 46, 62, 71, 73, 76 and 78 of these Rules to the principal Rules shall not apply, and the provisions of the principal Rules as unamended by these Rules shall continue to apply, where before 6th April 2009—

• (a) in relation to a company—

• (i) a moratorium under a company voluntary arrangement comes into force;

• (ii) the company enters administration;

• (iii) a receiver or manager is appointed;

• (iv) a resolution for a voluntary winding up is passed; or

• (v) a winding up petition is presented to the court; and

• (b) in relation to an individual, a bankruptcy petition is presented to the court.

• (2) In the case of a statutory demand, the amendments made by Rules 33, 34 and 35 of these Rules to Rules 6.3(3), 6.4(1) and 6.11(8) of the principal Rules shall not apply, and the provisions of the principal Rules as unamended by these Rules shall continue to apply where the demand is served on the debtor before 6th April 2009.

Amendments to the principal Rules

4

The principal Rules are amended as set out in Rules 5 to 78 of these Rules.

General amendment

5

In the principal Rules wherever it appears, for “forthwith” substitute “as soon as reasonably practicable”.

Amendment to Rule 1.40

6

In Rule 1.40, for paragraph (2) substitute—

(2) On receipt of the copies of the schedule pursuant to paragraph (1), the nominee— (a) as soon as reasonably practicable shall cause a notice of the coming into force of the moratorium to be gazetted; and (b) may advertise the notice in such other manner as the nominee thinks fit.

Amendment to Rule 1.42

7

In Rule 1.42, for paragraph (1) substitute—

(1) After the moratorium comes to an end, the nominee— (a) as soon as reasonably practicable shall cause a notice of its coming to an end and the date on which it came to an end to be gazetted; and (b) may advertise the notice in such other manner as the nominee thinks fit.

Amendment to Rule 2.27

8

In Rule 2.27, for paragraph (1) substitute—

(1) The notice of appointment to be given by the administrator as soon as reasonably practicable after appointment under paragraph 46(2)(b) shall be gazetted in Form 2.11B and may be advertised in such other manner as the administrator thinks fit.

Amendment to Rule 2.33

9

In Rule 2.33, for paragraph (7) substitute—

(7) Where the administrator wishes to publish a notice under paragraph 49(6), the notice shall be advertised in such manner as the administrator thinks fit. (7A) A notice published under Rule 2.33(7) shall— (a) state the full name of the company; (b) state the full name and address of the administrator; (c) give details of the administrator’s appointment; and (d) specify an address to which members can write for a copy of the statement of proposals.

Amendment to Rule 2.34

10

In Rule 2.34—

• (a) for paragraph (1) substitute—

(1) As soon as reasonably practicable after an invitation to the initial creditors’ meeting has been sent to the creditors in compliance with the requirements of paragraph 51(1), the administrator shall have gazetted— (a) the name, registered number and address of the registered office of the company in administration; (b) that an initial creditors’ meeting is to take place; (c) the venue fixed for the initial creditors’ meeting; and (d) the full name and address of the administrator.

; and

• (b) after paragraph (1), insert—

(1A) The information required to be gazetted under paragraph (1) may also be advertised in such other manner as the administrator thinks fit.

Amendment to Rule 2.45

11

In Rule 2.45, for the first sentence of paragraph (4) substitute—

Any notice to be published by the administrator acting under paragraph 54(3) shall be advertised in such manner as the administrator thinks fit.

Amendment to Rule 2.95

12

In Rule 2.95—

• (a) for paragraph (3) substitute—

(3) Subject to paragraph (5)(b), before declaring a dividend the administrator shall by notice invite the creditors to prove their debts. Such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the administrator thinks fit.

; and

• (b) for paragraph (5) substitute—

(5) Where a dividend is to be declared for preferential creditors— (a) the notice pursuant to paragraph (1) need only to be given to those creditors in whose case the administrator has reason to believe that their debts are preferential; and (b) the notice pursuant to paragraph (3) need only be given if the administrator thinks fit.

Amendment to Rule 2.113

13

In Rule 2.113, for paragraph (6) substitute—

(6) The requirements of paragraph 80(4) shall be taken to be complied with if, within 5 business days of filing the notice of end of administration with the court, the administrator has gazetted a notice undertaking to provide a copy of the notice of the end of administration to any creditor of the company. (6A) The notice under Rule 2.113(6) may be advertised in such other manner as the administrator thinks fit.

Amendment to Rule 3.2

14

In Rule 3.2, for paragraphs (3) and (4) substitute—

(3) Subject to paragraph (4), the notice of appointment to be given by the administrative receiver under section 46(1)(a) shall be gazetted and may be advertised in such other manner as the administrative receiver thinks fit. (4) The notice published under paragraph (3) may omit the matters stated in the notice of appointment sent to the company in compliance with sub-paragraphs (f) and (g) of paragraph (2).

Amendment to Rule 3.8

15

In Rule 3.8, for paragraph (1) substitute—

(1) If an administrative receiver gives notice under section 48(2)(b), the notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the administrative receiver thinks fit.

Amendment to Rule 3.9

16

In Rule 3.9—

• (a) for paragraph (6), substitute—

(6) Notice of the meeting summoned under section 48(2) and its venue, as soon as reasonably practicable, shall also be gazetted and may be advertised in such other manner as the receiver thinks fit.

; and

• (b) in paragraph (7), for “newspaper advertisement” substitute “notice given under paragraph (6).”.

Amendment to Rule 3.39

17

In Rule 3.39, for paragraph (4) substitute—

(4) Where the requirements of paragraph (5) are satisfied, the receiver may, instead of sending the report required under paragraph (2)— (a) cause a notice to the same effect to be gazetted; and (b) may advertise the notice in such other manner as the receiver thinks fit. (5) The requirements of this paragraph are that— (a) full details of the unsecured creditors of the company are not available to the receiver; or (b) the receiver thinks it is otherwise impracticable to send the report.

Substitution of Rule 4.11

18

For Rule 4.11, substitute—

(4.11) (1) Unless the court otherwise directs, the petitioner shall give notice of the petition. (2) The notice shall be gazetted. (3) Where compliance with paragraph (2) is not reasonably practicable, the court may direct that instead of the notice being gazetted, it shall be given in such other manner as the court thinks fit. (4) The notice must be made to appear— (a) if the petitioner is the company itself, not less than 7 business days before the day appointed for the hearing; and (b) otherwise, not less than 7 business days after service of the petition on the company, nor less than 7 business days before the day so appointed. (5) The notice must state— (a) the name, registered number of the company and the address of its registered office, or— (i) in the case of an unregistered company, the address of its principal place of business; (ii) in the case of an oversea company, the address at which service of the petition was effected; (b) the name and address of the petitioner; (c) where the petitioner is the company itself, the address of its registered office or, in the case of an unregistered company, of its principal place of business; (d) the date on which the petition was presented; (e) the venue fixed for the hearing of the petition; (f) the name and address of the petitioner’s solicitor (if any); and (g) that any person intending to appear at the hearing (whether to support or oppose the petition) must give notice of his intention in accordance with Rule 4.16. (6) If notice of the petition is not given in accordance with this Rule, the court may dismiss it.

Amendment to Rule 4.14

19

In Rule 4.14(2)—

• (a) for paragraph (c) substitute—

(c) the date or dates on which the petition was served and notice of it was given in compliance with the Rules.

; and

• (b) for “A copy of the advertisement of the petition shall be filed in court with the certificate”, substitute “A copy or, where this is not reasonably practicable, a description of the form and content of any notice given shall be filed in court with the certificate.”.

Amendment to Rule 4.21

20

For paragraph (4) of Rule 4.21 substitute—

(4) The official receiver— (a) as soon as reasonably practicable shall cause notice of the order to be gazetted; and (b) may advertise notice of the order in such other manner as the official receiver thinks fit.

Insertion of new Rule 4.21B

21

At the end of Chapter 3, after Rule 4.21A, add—

(4.21B) (1) Unless the court otherwise directs, when a petition is dismissed, as soon as reasonably practicable the petitioner shall give notice of the dismissal. Such notice shall be— (a) gazetted; or (b) advertised in accordance with any directions of the court. (2) The notice published in accordance with paragraph (1) shall state— (a) the name, registered number of the company and the address of its registered office, or (i) in the case of an unregistered company, the address of its principal place of business; (ii) in the case of an oversea company, the address at which service of the petition was effected; (b) the name and address of the petitioner; (c) where the petitioner is the company itself, the address of its registered office or, in the case of an unregistered company, of its principal place of business; (d) the date on which the petition was presented; (e) the date on which the petition was gazetted or otherwise advertised; and (f) the date of the hearing at which the petition was dismissed. (3) Where— (a) the petitioner is not the company itself; and (b) the petitioner has not complied with paragraphs (1) and (2) within 21 days of the date of the hearing at which the petition was dismissed, the company may give notice of the dismissal itself. Such notice shall be gazetted.

Amendment to Rule 4.25A

22

In Rule 4.25A, after paragraph (2), add—

(3) Unless the court otherwise directs, on receipt of the notice of appointment, as soon as reasonably practicable the provisional liquidator shall give notice of that appointment. Such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the provisional liquidator thinks fit.

Amendment to Rule 4.31

23

In Rule 4.31, after paragraph (2) add—

(3) Unless the court otherwise directs, where the provisional liquidator’s appointment is terminated, as soon as reasonably practicable the provisional liquidator shall give notice of that termination. Such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the provisional liquidator thinks fit.

Amendment to Rule 4.50

24

For paragraph (5) of Rule 4.50 substitute—

(5) Notice of the meetings shall be gazetted and may be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 4.54

25

For paragraph (6) of Rule 4.54 substitute—

(6) Notice of the meeting— (a) shall be gazetted; and (b) may be advertised in such other manner as the convenor thinks fit.

Amendment to Rule 4.102

26

In Rule 4.102—

• (a) after paragraph (4) insert—

(4A) On receipt of the sealed copy of the order of appointment, the liquidator— (a) as soon as reasonably practicable shall cause a notice of appointment to be gazetted; and (b) may cause the notice to be advertised in such other manner as the liquidator thinks fit.

• (b) for paragraph (5) substitute—

(5) Within 28 days from appointment, the liquidator shall also— (a) give notice of it to all creditors and contributories of the company of whom the liquidator is aware; or (b) advertise it in accordance with any directions given by the court.

; and

• (c) in paragraph (6) omit “or advertisement”.

Amendment to Rule 4.103

27

For paragraph (4) of Rule 4.103 substitute—

(4) Within 28 days from appointment, the liquidator shall— (a) give notice of it to all creditors of the company of whom the liquidator is aware; or (b) advertise it in accordance with any directions given by the court.

Amendment to Rule 4.106

28

For paragraph (1) of Rule 4.106 substitute—

(1) Subject as follows, a liquidator who is appointed by a creditors’ or contributories’ meeting, or by a meeting of the company, as soon as reasonably practicable after receiving the certificate of appointment, shall give notice of it. In addition to being gazetted pursuant to section 109(1), the notice may also be advertised in such other manner as the liquidator thinks fit.

Amendment to Rule 4.182A

29

For paragraph (1) of Rule 4.182A substitute—

(1) In a members’ voluntary winding up the liquidator may give notice of the intention to make a distribution to creditors. Such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the liquidator thinks fit.

Amendment to Rule 4.212

30

In Rule 4.212—

• (a) for paragraph (3) substitute—

(3) Subject to paragraph (4), where the official receiver thinks fit, notice of the order— (a) shall be gazetted; and (b) may be advertised in such other manner as the official receiver thinks fit, not less than 14 days before the date fixed for the hearing.

; and

• (b) after paragraph (3) add—

(4) Unless the court otherwise directs, there shall be no publication under paragraph (3) before at least 7 days have elapsed since the examinee was served with the order.

Amendment to Rule 5.60

31

For paragraph (3) in Rule 5.60 substitute—

(3) The former bankrupt may in writing within 28 days of the date of the order require the Secretary of State to give notice of the making of the order. As soon as reasonably practicable the notice shall be— (a) gazetted; and (b) advertised in the same manner as the bankruptcy order to which it relates was advertised.

Insertion of new Part 5A - debt relief orders

32

In the Second Group of Parts (individual insolvency: bankruptcy), immediately after Part 5 (individual voluntary arrangements), insert as Part 5A the Part set out in Schedule 1 to these Rules.

Amendment to Rule 6.3

33

In paragraph (3) of Rule 6.3, for “the demand may be advertised in one or more newspapers” substitute “the creditor may advertise the demand in such manner as the creditor thinks fit”.

Amendment to Rule 6.4

34

In paragraph (1) of Rule 6.4 omit “in a newspaper”.

Amendment to Rule 6.11

35

In Rule 6.11—

• (a) In paragraph (8)—

• (i) omit “newspaper” where it first occurs;

• (ii) for sub-paragraph (b) substitute—

(b) the method by which, and the date or dates on which the statutory demand was advertised under that rule

; and

• (b) at the end of paragraph (8), for “a copy of any advertisement”, substitute “either a copy of any advertisement of the statutory demand or, where this is not reasonably practicable, the affidavit shall contain or exhibit a description of the contents of any such advertisement.”.

Amendment to Rule 6.34

36

For paragraph (2) of Rule 6.34 substitute—

(2) Subject to the next paragraph, on receipt of the sealed copies of the bankruptcy order, the official receiver— (a) as soon as reasonably practicable shall— (i) send notice of the making of the order to the Chief Land Registrar, for registration in the register of writs and orders affecting land; (ii) cause notice of the order to be gazetted; and (b) may cause notice of the order to be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 6.35

37

In Rule 6.35—

• (a) for paragraph (2) substitute—

(2) Where such an order is made, as soon as reasonably practicable the official receiver shall send notice of it to the Chief Land Registrar for corresponding amendment of the register.

; and

• (b) after paragraph (2) add—

(3) If the official receiver thinks fit, notice of the order— (a) as soon as reasonably practicable, shall be gazetted; and (b) may be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 6.46

38

For paragraph (2) in Rule 6.46 substitute—

(2) Subject to the next paragraph, on receipt of the sealed copies of the bankruptcy order, the official receiver— (a) as soon as reasonably practicable shall— (i) send notice of the making of the order to the Chief Land Registrar, for registration in the register of writs and orders affecting land; and (ii) cause notice of the order to be gazetted; and (b) may cause notice of the order to be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 6.47

39

In Rule 6.47—

• (a) for paragraph (2) substitute—

(2) Where such an order is made, as soon as reasonably practicable the official receiver shall send notice of it to the Chief Land Registrar for corresponding amendment of the register.

; and

• (b) after paragraph (2) add—

(3) Where the official receiver thinks fit, notice of the order— (a) as soon as reasonably practicable shall be gazetted; and (b) may be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 6.79

40

For paragraph (5) of Rule 6.79 substitute—

(5) As soon as reasonably practicable, notice of the meeting shall also be gazetted and may be advertised in such other manner as the official receiver thinks fit.

Amendment to Rule 6.81

41

For paragraph (4) of Rule 6.81 substitute—

(4) Where the convenor thinks fit, as soon as reasonably practicable, additional notice of the meeting shall be given. Such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the convenor thinks fit.

Amendment to Rule 6.124

42

For paragraph (1) of Rule 6.124 substitute—

(1) A trustee who is appointed by a creditors’ meeting, as soon as reasonably practicable after receiving the certificate of appointment, shall give notice of that appointment. Such notice— (a) shall be gazetted; and (b) may be advertised in other such manner as the trustee thinks fit.

Amendment to Rule 6.134

43

In the heading to, and in Rule 6.134, for “advertisement” substitute “notice”.

Amendment to Rule 6.172

44

In Rule 6.172—

• (a) for paragraph (4) substitute—

(4) Where the official receiver thinks fit, a notice of the order shall be gazetted not less than 14 days before the day fixed for the hearing.

; and

• (b) after paragraph (4) add—

(5) The official receiver may advertise the notice under paragraph (4) of this Rule in such other manner as the official receiver thinks fit.

Amendment to Rule 6.213

45

For paragraph (3) of Rule 6.213, substitute—

(3) Within 28 days of the making of the order, the former bankrupt may require the Secretary of State to give notice of the making of the order. As soon as reasonably practicable such notice shall be— (a) gazetted; and (b) advertised in the same manner as the bankruptcy order to which it relates was advertised.

Amendment to Rule 6.220

46

For paragraph (2) of Rule 6.220, substitute—

(2) The discharged bankrupt may require the Secretary of State to give notice of the discharge. As soon as reasonably practicable such notice shall be— (a) gazetted; and (b) advertised in such manner as the bankruptcy order to which it relates was advertised.

Insertion of new Chapters 31, 32 and 33 of Part 6 - debt relief restrictions orders and undertakings

47

At the end of Part 6 add—

(6.252) In this Chapter and in Chapter 32, “Secretary of State” includes the official receiver acting in accordance with paragraph 1(2)(b) of Schedule 4ZB to the Act. (6.253) (1) Where the Secretary of State applies to the court for a debt relief restrictions order to be made in relation to a person in respect of whom a debt relief order has been made under paragraph 1 of Schedule 4ZB to the Act, the application shall be supported by a report by the Secretary of State. (2) The report shall include— (a) a statement of the conduct by reference to which it is alleged that it is appropriate for a debt relief restrictions order to be made; and (b) the evidence on which the Secretary of State relies in support of the application. (3) Any evidence in support of an application for a debt relief restrictions order provided by persons other than the Secretary of State shall be by way of an affidavit. (4) The date for the hearing shall be no earlier than 8 weeks from the date when the court fixes the venue for the hearing. (5) For the purposes of hearing an application under this Rule by a registrar, Rule 7.6(1) shall not apply and the application shall be heard in public. (6.254) (1) The Secretary of State shall serve notice of the application and the venue fixed by the court on the debtor not more than 14 days after the application is made at court. (2) Service shall be accompanied by a copy of the application, together with copies of the report by the Secretary of State, any other evidence filed with the court in support of the application, and an acknowledgement of service. (3) The defendant shall file in court an acknowledgement of service of the application indicating whether or not he contests the application not more than 14 days after service on him of the application. (4) Where the defendant has failed to file an acknowledgement of service and the time period for doing so has expired, the defendant may attend the hearing of the application but may not take part in the hearing unless the court gives permission. (6.255) (1) If the debtor wishes to oppose the application, he shall within 28 days of the service of the application and evidence of the Secretary of State, file in court any evidence which he wishes the court to take into consideration, and shall serve a copy of such evidence upon the Secretary of State within 3 days of filing it at court. (2) The Secretary of State shall, within 14 days from receiving the copy of the debtor’s evidence, file in court any further evidence in reply he wishes the court to take into consideration and shall as soon as reasonably practicable serve a copy of that evidence upon the debtor. (6.256) (1) The court may make a debt relief restrictions order against the debtor, whether or not the latter appears and whether or not he has filed evidence in accordance with Rule 6.255. (2) Where the court makes a debt relief restrictions order, it shall send two sealed copies to the Secretary of State. (3) As soon as reasonably practicable after receipt of the sealed copy of the order, the Secretary of State shall send a sealed copy of the order to the debtor. (6.257) (1) Where the Secretary of State applies for an interim debt relief restrictions order under paragraph 5 of Schedule 4ZB to the Act, the court shall fix a venue for the hearing. (2) Notice of an application for an interim debt relief restrictions order shall be given to the debtor at least 2 business days before the date set for the hearing unless the court directs otherwise. (3) For the purposes of hearing an application under this Rule by a registrar, Rule 7.6(1) shall not apply and the application shall be heard in public. (6.258) (1) The Secretary of State shall file a report in court as evidence in support of any application for an interim debt relief restrictions order. (2) The report shall include evidence of the debtor‘s conduct which is alleged to constitute the grounds for the making of an interim debt relief restrictions order and evidence of matters which relate to the public interest in making the order. (3) Any evidence by persons other than the Secretary of State in support of an application for an interim debt relief restrictions order shall be by way of an affidavit. (6.259) (1) The debtor may file in court any evidence which he wishes the court to take into consideration and may appear at the hearing for an interim debt relief restrictions order. (2) The court may make an interim debt relief restrictions order against the debtor, whether or not the latter appears, and whether or not he has filed evidence. (3) Where the court makes an interim debt relief restrictions order, as soon as reasonably practicable, it shall send two sealed copies of the order to the Secretary of State. (4) As soon as reasonably practicable after receipt of the sealed copies of the order, the Secretary of State shall send a copy of the order to the debtor. (6.260) (1) A person subject to an interim debt relief restrictions order may apply to the court to set the order aside. (2) An application to set aside an interim debt relief restrictions order shall be supported by an affidavit stating the grounds on which the application is made. (3) Where an application is made to set aside an interim debt relief restrictions order under paragraph (1), the person making the application shall send to the Secretary of State, not less than 7 days before the hearing— (a) notice of his application; (b) notice of the venue; (c) a copy of his application; and (d) a copy of the supporting affidavit. (4) The Secretary of State may attend the hearing and call the attention of the court to any matters which seem to him to be relevant, and may himself give evidence or call witnesses. (5) Where the court sets aside an interim debt relief restrictions order two sealed copies of the order shall be sent, as soon as reasonably practicable, to the Secretary of State by the court. (6) As soon as reasonably practicable after receipt of the sealed copies of the order, the Secretary of State shall send a sealed copy of the order to the applicant. (6.261) A debt relief restrictions undertaking signed by a person in relation to whom a debt relief order has been made shall be deemed to have been accepted by the Secretary of State for the purposes of paragraph 9 of Schedule 4ZB to the Act when the undertaking is signed by the Secretary of State. (6.262) As soon as reasonably practicable after a debt relief restrictions undertaking has been accepted by the Secretary of State, a copy shall be sent to the person who offered the undertaking and to the official receiver. (6.263) (1) An application under paragraph 9(3)(a) or (b) of Schedule 4ZB to the Act shall be supported by an affidavit stating the grounds on which it is made. (2) The applicant shall give notice of the application and the venue, together with a copy of the affidavit supporting his application to the Secretary of State at least 28 days before the date fixed for the hearing. (3) The Secretary of State may attend the hearing and call the attention of the court to any matters which seem to him to be relevant, and may himself give evidence or call witnesses. (4) The court shall send a sealed copy of any order annulling or varying the debt relief restrictions undertaking to the Secretary of State and the applicant.

Amendment to Rule 6A.1

48

In Rule 6A.1—

• (a) in paragraph (1), after “bankruptcies”, insert “, debt relief orders”; and

• (b) for paragraph (2), substitute—

(2) The register— (a) referred to in paragraph 12 of Schedule 4A to the Act (referred to in this Part as “the bankruptcy restrictions register”), and (b) of the matters specified in paragraphs (b) and (c) of section 251W (referred to in this Part as “the debt relief restrictions register”), shall be maintained in accordance with the provisions of this Part.

Amendment to Rule 6A.4

49

In Rule 6A.4(3), for sub-paragraph (c), substitute—

(c) where a bankruptcy order or debt relief order has been made in the period of six years immediately prior to the day of the latest bankruptcy order made against the bankrupt (excluding for these purposes any bankruptcy order that was annulled or any debt relief order that was revoked), the date of whichever is the latest of them;

Amendment to Rule 6A.5

50

After Rule 6A.5, before the cross-heading for Chapter 3, insert—

(6A.5A) (1) This Rule is subject to Rule 6A.5B. (2) The official receiver shall cause to be entered onto the individual insolvency register as soon as reasonably practicable after the making of a debt relief order the following information relating to the order or to the debtor in respect of whom it has been made— (a) as they are stated in the debtor’s application— (i) the name, gender, occupation (if any) and date of birth of the debtor; (ii) the debtor’s last known address; (iii) the name or names in which he carries or has carried on business, if other than his true name; and (iv) the nature of his business and the address or addresses at which he carries or has carried it on and whether alone or with others; (b) the date of the making of the debt relief order; (c) the reference number of the order; (d) the date of the end of the moratorium period; and (e) where a bankruptcy order or a debt relief order has been made in the period of six years immediately prior to the date of the latest debt relief order made against the debtor (excluding for these purposes any bankruptcy order that was annulled or any debt relief order that was revoked), the date of whichever is the latest of them. (3) Provided that information concerning a debt relief order has not been validly deleted under Rule 6A.5B, the official receiver shall also cause to be entered on the register in relation to the order— (a) where the moratorium period is terminated early, the fact that such has happened, the date of early termination and whether the early termination is on revocation of the debt relief order or by virtue of any other enactment; (b) where the moratorium period is extended, the fact that such has happened, the date on which the extension was made, its duration and the date of the new anticipated end of the moratorium period; or (c) where the debtor is discharged from all qualifying debts, the date of such discharge. (6A.5B) The Secretary of State shall delete from the individual insolvency register all information concerning a debt relief order where— (a) the debt relief order has been revoked, or (b) the debtor has been discharged from his qualifying debts, and a period of 3 months has elapsed from the date of revocation or discharge.

Insertion of new Chapter 3A into Part 6A

51

After Rule 6A.7 insert—

(6A.7A) (1) This Rule is subject to Rule 6A.7B. (2) Where an interim debt relief restrictions order or a debt relief restrictions order is made against a debtor, the Secretary of State shall enter onto the debt relief restrictions register— (a) the name, gender, occupation (if any) and date of birth of the debtor; (b) the debtor’s last known address; (c) a statement that an interim debt relief restrictions order or, as the case may be, a debt relief restrictions order has been made against him; (d) the date of the making of the order and the order reference number; and (e) the duration of the order. (3) Where a debt relief restrictions undertaking is given by a debtor, the Secretary of State shall enter onto the debt relief restrictions register— (a) the name, gender, occupation (if any) and date of birth of the debtor; (b) the debtor’s last known address; (c) a statement that a debt relief restrictions undertaking has been given; (d) the date of the acceptance of the debt relief restrictions undertaking by the Secretary of State and reference number of the undertaking; and (e) the duration of the debt relief restrictions undertaking. (6A.7B) In any case where an interim debt relief restrictions order or a debt relief restrictions order is made or a debt relief restrictions undertaking has been accepted, the Secretary of State shall remove from the debt relief restrictions register all information regarding that order or, as the case may be, undertaking after— (a) receipt of notification that the order or, as the case may be, undertaking has ceased to have effect; or (b) the expiry of the order or, as the case may be, undertaking.

Amendment to Rule 6A.8

52

In Rule 6A.8, for paragraph (2) substitute—

(2) Where the Secretary of State receives notice of the date of the death of a person in respect of whom information is held on any of the registers, he shall cause the fact and date of the person’s death to be entered onto the individual insolvency register and, as the case may be, the bankruptcy restrictions register or the debt relief restrictions register.

Amendment to Rule 7.2

53

Immediately before the end of Rule 7.2(1) add—

; and “proceedings relating to a debt relief order” includes proceedings relating to a debt relief restrictions order or undertaking except as the context otherwise requires

Amendment to Rule 7.11

54

In Rule 7.11—

• (a) after “winding-up or bankruptcy proceedings” in paragraphs (1), (2) and (4) insert “or proceedings relating to a debt relief order”;

• (b) in paragraph (3)—

• (i) after “In any case where”, insert “winding-up”, and

• (ii) omit “or, as the case may be, jurisdiction in bankruptcy”; and

• (c) after paragraph (3), insert—

(3A) In any case where bankruptcy proceedings or proceedings relating to a debt relief order are transferred to a county court, the transfer must be to a court which has jurisdiction in bankruptcy.

Amendment to Rule 7.12

55

In Rule 7.12, after “winding-up or bankruptcy proceedings”, insert “or proceedings relating to a debt relief order”.

Amendment to Rule 7.13

56

In Rule 7.13, for paragraph (1)(b), substitute—

(b) including a statement either that— (i) the petitioner, or (ii) the debtor in proceedings relating to a debt relief order, consents to the transfer, or that he has been given at least 14 days’ notice of the official receiver’s application.

Amendment to Rule 7.16

57

In Rule 7.16(2), after “133, 236,” insert “251N,”.

Amendment to Rule 7.21

58

In Rule 7.21(2), after “134(2), 236(5),”, insert “251N(5),”.

Amendment to Rule 7.23

59

In Rule 7.23—

• (a) in the heading, after “ss 236,” insert “251N and”; and

• (b) in paragraph (1), immediately before “or 366” insert “, 251N (the equivalent in relation to debt relief orders)”.

Amendment to Rule 7.26

60

In Rule 7.26, for paragraph (2) substitute—

(2) Every proceeding under— (i) Part 7A of the Act shall be headed “IN THE MATTER OF A DEBT RELIEF ORDER”, and (ii) Parts 9 to 11 of the Act shall be headed “IN BANKRUPTCY”.

Amendment to Rule 7.31

61

Immediately before the end of Rule 7.31(2) add “; and (d) in proceedings relating to a debt relief order, by the debtor”.

Amendment to Rule 7.32

62

Rule 7.32 shall cease to have effect.

Amendment to Rule 7.40

63

In Rule 7.40, for paragraphs (1) to (3) substitute—

(1) This Rule applies where a party to, or person affected by, any proceedings in an insolvency— (a) applies to the court for an order allowing his costs, or part of them, incidental to the proceedings; and (b) that application is not made at the time of the proceedings. (2) The person concerned shall serve a sealed copy of his or her application— (a) in proceedings other than proceedings relating to a debt relief order— (i) on the responsible insolvency practitioner, and, (ii) in a winding up by the court or a bankruptcy, on the official receiver; (b) in proceedings relating to a debt relief order, on the official receiver. (3) The insolvency practitioner and, where appropriate, the official receiver may appear on an application to which paragraph (2)(a) applies. (3A) The official receiver may appear on an application to which paragraph (2)(b) applies.

Amendment to Rule 7.41

64

In Rule 7.41—

• (a) in paragraph (1), after “the bankrupt”, insert “or the debtor ”; and

• (b) in paragraph (2), for “insolvency proceedings”, substitute “a company insolvency or bankruptcy proceedings”.

Amendment to Rule 7.64

65

At the end of Rule 7.64(1) add “other than proceedings relating to a debt relief order”.

Amendment to Rule 9.1

66

In Rule 9.1—

• (a) in paragraph (1), after subparagraph (a), insert “(aa) section 251N (debt relief orders – inquiry into dealings and property of debtor), or”; and

• (b) in paragraph (2), for subparagraphs (b) and (c) substitute—

(b) “the applicable section” is section 236, 251N or 366, according to whether the affairs of a company or those of a debtor in relation to a debt relief order or an application for a debt relief order or a bankrupt or (where the application under section 366 is made by virtue of section 368) a debtor in bankruptcy proceedings are in question; (c) the company or, as the case may be, the debtor in relation to a debt relief order or an application for a debt relief order, the bankrupt or debtor in bankruptcy proceedings concerned is “the insolvent”; (d) “the applicant”, in any application made under section 251N, means the official receiver.

Amendment to Rule 9.4

67

In Rule 9.4 (4), for “the applicable section” substitute “section 236 or 366”.

Amendment to Rule 9.6

68

In Rule 9.6—

• (a) in the heading, after “ss 236,” insert “251N and”; and

• (b) in paragraph (3)(b), after “individual insolvency” insert “, but not in proceedings relating to debt relief orders or applications for debt relief orders”.

Amendment to Rule 10.2

69

In Rule 10.2(1)(a), after “236,” insert “251N,”.

Amendment to Rule 10.4

70

In Rule 10.4(2), after “paragraph (1)” insert “in connection with insolvency proceedings other than proceedings relating to debt relief orders or applications for debt relief orders”.

Amendment to Rule 11.2

71

In Rule 11.2—

• (a) for paragraph (1A), substitute—

(1A) Before declaring a first dividend the responsible insolvency practitioner shall give notice of the intended dividend. As soon as reasonably practicable such notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the responsible insolvency practitioner thinks fit.

; and

• (b) after paragraph (1A) insert—

(1B) Paragraph (1A) shall not apply where the responsible insolvency practitioner has previously, by notice, invited creditors to prove their debts.

Amendment to Rule 12.1

72

In Rule 12.1(1)(d)(ii), for “individual insolvency” substitute “bankruptcy”.

Amendment to Rule 12.22

73

For paragraph (5) of Rule 12.22, substitute—

(5) The court may direct that the requirement of paragraph (3) shall be taken to be complied with if a notice has been published by the liquidator, administrator or receiver, as the case may be, stating that the court has made an order disapplying the requirement to set aside the prescribed part. As soon as reasonably practicable the notice— (a) shall be gazetted; and (b) may be advertised in such other manner as the liquidator, administrator or receiver thinks fit.

Amendment to Rule 13.3

74

In Rule 13.3—

• (a) in paragraph (1), after “personal”, insert “or other”;

• (b) in paragraph (3), at the end insert “except applications for debt relief orders”; and

• (c) in paragraph (4), after “application” where it first occurs, insert “made to the court”.

Amendment to Rule 13.8

75

In Rule 13.8(b), for “an individual insolvency” substitute “a bankruptcy or a petition for bankruptcy”.

Amendment to Rule 13.13

76

In Rule 13.13, after paragraph (4), insert—

(4A) “gazetted” means to advertise once in the Gazette.

Amendment to Schedule 2 – alternative courts

77

In Schedule 2 to the principal Rules, for the heading and the reference to Rule 6.40(3) substitute—

SCHEDULE2

Amendments to Schedule 4 - forms

78

Schedule 4 to the principal Rules is amended as set out in Schedule 2 to these Rules.

SCHEDULE 1 — PART 5A OF THE INSOLVENCY RULES

SCHEDULE 2 — Amendments to Index, Title and Content of Forms in Schedule 4 to the Insolvency Rules 1986

1

In the index to forms in Schedule 4, for the entry relating to—

• (a) Form 1.10 in Part 1, substitute “Advertisement of coming into force or ending of moratorium (for Gazette and other advertising)”;

• (b) Form 2.11B in Part 2, substitute “Notification of appointment of administrator (for Gazette and other advertising)”; and

• (c) Form 3.1A in Part 3, substitute “Notice of appointment of administrative receiver (for Gazette and other advertising)”.

2

There is substituted for the title in Schedule 4 of—

• (a) Form 1.10, the title “Advertisement of coming into force or ending of moratorium (for Gazette and other advertising)”;

• (b) Form 2.11B, the title “Notification of appointment of administrator (for Gazette and other advertising)”;

• (c) Form 3.1A, the title “Notice of appointment of administrative receiver (for Gazette and other advertising”.

3

In the forms in Schedule 4 listed below, the contents are amended as follows—

• (a) in Form 4.7—

• (i) for “and advertised in accordance with the provisions of Rule 4.11 on (a)” substitute “and [was gazetted in accordance with the provisions of Rule 4.11 on (a)][was advertised as directed by the court and in accordance with the provisions of Rules 4.11(3) – (5) on (a)][the court has previously directed under Rule 4.11(1) that no further notice of the petition shall be given]”;

• (ii) adjacent to and before “and advertised in accordance with the provisions of Rule 4.11 on (a) ” insert “(b) Delete if inapplicable”;

• (iii) for “Note A copy of the advertisement must be filed in court with this certificate”, substitute “Note A copy, or a description of the form and content of any notice shall be filed in court with this certificate”;

• (b) in the table in Form 4.71 and in Form 4.72, for “Costs of notices in the Gazette and newspaper” substitute “Costs of gazetting and other advertising”;

• (c) in Form 5.7, in note one of the Notice to Bankrupt, for “Should you, the bankrupt, require advertisement of this order in a newspaper and/or the Gazette”, substitute “Should you, the bankrupt, require notice of this order to be gazetted and advertised in the same manner as the bankruptcy order was advertised”;

• (d) in Form 5.8, in note one of the Notice to Bankrupt, for “Should you, the bankrupt, require advertisement of this order in a newspaper and/or the Gazette”, substitute “Should you, the bankrupt, require notice of this order to be gazetted and advertised in the same manner as the bankruptcy order was advertised”;

• (e) in note (c) of the notes in Form 6.12—

• (i) for “(newspaper advertisement)”, substitute “(advertising)”; and

• (ii) for “the date or dates on which, and the newspaper in which, the demand was advertised”, substitute “the method by which, and the date or dates on which, the demand was advertised”;

• (f) in Form 6.15—

• (i) for “in the London Gazette and/or in the newspaper”, substitute “(e)”; and

• (ii) in the notes, insert “(e) Insert method by which the petition is to be publicised”;

• (g) in note one of the Notice to Bankrupt in Form 6.71, for “Should you, the bankrupt, require advertisement of this order in a newspaper and/or the Gazette”, substitute “Should you, the bankrupt, require notice of this order to be gazetted and advertised in the same manner as the bankruptcy order was advertised”;

• (h) in the Notice to Bankrupt in Form 6.76 and in Form 6.77—

• (i) for “Should you, the bankrupt, require advertisement of this order in a newspaper and/or the Gazette”, substitute “Should you, the bankrupt, require notice of this order to be gazetted and advertised in the same manner as the bankruptcy order was advertised”; and

• (ii) omit “within days”.

Signed

Jack Straw — Lord Chancellor and Secretary of State for Justice — Ministry of Justice — 9th March 2009

I concur, by the authority of the Lord Chief Justice

The Rt Hon Sir Andrew Morritt — The Chancellor of the High Court — 10th March 2009

I concur, on behalf of the Secretary of State

Pat McFadden — Minister of State for Employment Relations and Postal Affairs — Department for Business, Enterprise and Regulatory Reform — 10th March 2009

Explanatory note

(This note is not part of the Rules)

EXPLANATORY NOTE

These Rules amend the Insolvency Rules 1986 (S.I. 1986/1925) (“the principal Rules”). The amendments may be divided into those which provide for the introduction of debt relief orders, debt relief restrictions orders and debt relief restrictions undertakings and those which make changes to the rules on the publication or advertisement of notices.

Currently notices are required to be published in the London Gazette or in a newspaper. The amended Rules continue to require publication in the London Gazette but allow a discretion to be exercised as to whether any further publication is required and the methods which may be utilised to do so. The amendments apply, therefore to every aspect of company or individual insolvency which requires publication of notices.

Rule 3 makes the advertising changes subject to transitional provisions applying the new rules essentially to winding ups, company voluntary arrangements, administrations, receiverships and bankruptcies which commence on or after 6th April 2009. Special provision is made in the case of statutory demands. In addition to the amendments made by Rules 5 to 31, 33 to 46, 62, 71, 73 and 76, Rule 78 makes amendments by way of Schedule 2 to these Rules reflecting the advertising changes in relation to Forms in Schedule 4 to the principal Rules.

With regard to debt relief orders, section 108(1) of, together with Schedule 17 to, the Tribunals, Courts and Enforcement Act 2007 (c.15) introduces a new Part 7A into the Insolvency Act 1986. Part 7A makes provision for debt relief orders. Applications for debt relief orders are made to the official receiver through an approved intermediary. A debt relief order is made in respect of qualifying debts. A debt relief order which is made in respect of qualifying debts imposes a moratorium on action in respect of the debts to which the order applies. At the end of the period of the moratorium, if the debt relief order has not been revoked, the debtor is discharged from his qualifying debts.

Section 108(2) of, and Schedules 18 and 19 to, the Tribunals, Courts and Enforcement Act 2007 insert two new Schedules, Schedule 4ZA and Schedule 4ZB, into the Insolvency Act 1986. Schedule 4ZA sets out certain conditions with which an applicant for a debt relief order must comply in order to be eligible for a debt relief order. Schedule 4ZB introduces debt relief restrictions orders and undertakings. Schedule 20 to the 2007 Act makes amendments to the Insolvency Act 1986 consequential to the introduction of debt relief orders and debt relief restriction orders and undertakings.

The Rules relating to debt relief orders are made under section 412 of the Insolvency Act 1986 as amended by the Constitutional Reform Act 2005 (c.4) and further amended by the Tribunals, Courts and Enforcement Act 2007 so as to permit the power in that section to be exercised in relation to new Part 7A of the 1986 Act.

Rule 32 of these Rules inserts new Part 5A into the principal Rules by way of Schedule 1 to these Rules. Part 5A sets out the matters which Part 7A either permits or requires to be prescribed by rules for the purpose of an application for, and the making of debt relief orders.

Rule 47 of these Rules inserts new Rules 6.252 to 6.263 into Part 6 of the principal Rules. The new Rules introduce debt relief restrictions orders and undertakings which correspond in almost every way to the bankruptcy restrictions orders and undertakings which are already provided for in Part 6.

Rules 48 to 52 amend the existing Rules concerning the individual insolvency register. The new Rules provide for the existing individual insolvency register to incorporate the registration of debt relief orders. They amend the principal Rules so as to make provision for the new debt relief restrictions register. Provision is made for the insertion of new Rules 6A.5A and 6A.5B and new Rules 6A.7A and 6A.7B which make specific provision for the making of entries in, and deletion of information from the individual insolvency register and the debt relief restrictions register.

Rules 53 to 61, 63 to 70, 72, 74 and 75 make amendments respectively to Part 7 (court procedure and practice), Part 9 (examination of persons), Part 10 (official receivers), Part 12 (miscellaneous and general) and Part 13 (interpretation and application) of the principal Rules consequential upon the introduction of new Part 7A into the Insolvency Act 1986 and new Part 5A into the principal Rules.

Rule 77 makes an amendment to the heading of Schedule 2 to the principal Rules, which lists alternative courts for the purposes of individual insolvency proceedings.

Schedule 1 to these Rules contains new Part 5A (debt relief orders) inserted by these Rules into the principal Rules.

The remaining rules in these Rules give effect to changes in advertising.

Rule 78, by way of Schedule 2 to these Rules, makes amendments to forms in Schedule 4 to the principal Rules, consequential upon the advertising changes

An Impact Assessment was prepared for the debt relief provisions of the Tribunal, Courts and Enforcement Act 2007. It may be consulted on the website www.dca.gov.uk/consult/debt/debt.htm and www.insolvency.gov.uk.htm.

An Impact Assessment has also been prepared for these Rules, copies of which are available from the Insolvency Service Poicy Unit at Policy.Unit@insolvency.gsi.gov.uk.

Footnotes

[^f00001]: 1986 c.45. Sections 412 and 413 of the Act were amended by the Constitutional Reform Act 2005 (c.4), section 15(1), Schedule 4, Part 1, paragraphs 185, 189(1) and (3) and 195(1)(2) and (3) and by the Tribunals, Courts and Enforcement Act 2007 ( c.15), section 108(3), Schedule 20, Part 1, paragraph 8.

[^f00002]: S.I. 1986/1925 as amended by S.I. 1987/1919, 1989/397, 1991/495, 1993/602, 1995/586, 1999/359, 1999/1022, 2001/763, 2002/1307, 2002/2712, 2003/1730, 2004/584, 2004/1070, 2005/527, 2006/1272, 2007/1974 and 2008/737.

[^f00003]: 1991 c.48.

[^f00004]: 1986 c.32.

[^f00005]: 1987 c.41.

[^f00006]: 1988 c.33.

[^f00007]: 2002 c.29.

[^f00008]: 1980 c.43.

[^f00009]: 1984 c.42.

[^f00010]: 1998 c.30.

[^f00011]: 1990 c.6.

[^f00012]: 1999 c.30.

[^f00013]: 1988 c.50.

[^f00014]: 1977 c.42.

[^f00015]: 1976 c.80.

[^f00016]: 1985 c.68.

[^f00017]: 1986 c.46.