Insolvency reform
Corporate insolvency
Streamlining the administration procedure.
Restricting the ability of lenders to appoint an administrative receiver to the holders of pre-existing floating charges and certain capital market and other transactions.
Crown Preference
Removing the Crown’s preferential rights in all insolvencies and making provision to ensure unsecured creditors are major beneficiaries.
Insolvency of individuals
Providing for the automatic discharge of nearly all bankrupts after a maximum of 12 months.
Reducing the number of restrictions that are automatically imposed on undischarged bankrupts.
Providing for a court-based regime – Bankruptcy Restrictions Orders – to be attached to those bankrupts whose conduct, before and during bankruptcy, the court has found to be culpable.
Financial regime
Enabling reform of the Insolvency Service financial regime, in particular, facilitating the return to creditors of more of the income from monies held in the Insolvency Services Investment Account.
