Part 10 of the Enterprise Act deals with insolvency, and was designed to streamline and modernise insolvency proceedings. The following is an outline of the new provisions:
Companies
|
 |
Streamlined procedure of administration |
|
For debentures issued after 15th September 2003, restrictions on rights to appoint an administrative receiver |
|
Introduces a prescribed sum that is to be preserved for unsecured creditors, from assets covered by a floating charge |
| |
|
Individuals
|
|
Automatic discharge of nearly all bankrupts after a maximum of 12 months |
|
Introduces Bankruptcy Restrictions Orders (BROs) |
|
Introduces Income Payments Agreements (IPAs) as an administrative alternative to court-based Income Payments Orders (IPOs) |
|
Enables the Official Receiver (OR) to act as nominee and supervisor of new fast-track IVAs begun after a bankruptcy order has been made |
|
Investigation by Official Receiver as to why a bankrupt failed only where he thinks that this is necessary |
|
Limits to three years the period in which a trustee may deal with a bankrupt's interest in the sole or principal home of the bankrupt, the bankrupt's spouse or a former spouse before that interest reverts to the bankrupt |
| |
|
Crown Preferential Rights
|
|
Removes the Crown's preferential rights in all insolvencies, and make provision to ensure unsecured creditors are major beneficiaries |
| |
|
Modernisation of the financial regime of The Insolvency Service
|
|
Reforms the financial regime of The Insolvency Service, making it simpler, fairer to creditors, and more transparent. Changes to the Insolvency Services Account will maximise the investment return to estates |
