Clarkson Wright and Jakes Ltd Banner Image

Insights

Clarity on the new Insolvency Proceedings Practice Direction

On 25 April 2018, Lord Chancellor David Gauke MP signed the new Insolvency Proceedings Practice Direction, (“IPD”). The IPD updates the previous one by making reference to the Insolvency Rules 2016, taking account of recently decided cases and changes in the CPR (in particular with regards to the Business and Property Courts Practice Direction), specifying new arrangements for the distribution of insolvency business across the different levels of the judiciary, and clarifying the routes of appeal in insolvency cases and shall replace all previous Practice Directions, Practice Statements and Practice Notes relating to insolvency proceeding.

However, there is a snag.

After implementation, a number of errors were identified and they now need to be resolved by amendments to the IPD. The timing of when these amendments will be published and come into force will depend on whether the amendments require the approval of the Lord Chancellor.

Although it was first announced that the IPD had been withdrawn completely, this is not the case, as it has been announced that the IPD will remain in force, despite being subject to such future amendments due to errors. 

Watch this space…….

Although correct at the time of publication, the contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.