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News & Updates

Insolvency Rules 2016 now in force. Read how this has affected us, and what we are doing about it&#8

How Does it Affect the way we Serve?

In essence, the way in which your Statutory Demands, Bankruptcy Petitions and Winding Up Petitions are served will not change (subject to final confirmation of this once the Practice Direction which accompanies the Rules becomes available to us – as this has not yet been published). There will however be slight changes to the format of the Certificate of Service, which have been actioned.

Winding Up Petitions will now refer to whether service was effected before or after 16.30 hours, in accordance with CPR, as oppose to 16.00 hours as previously.

Statutory Demands served by letterbox will now need to specify a date on which it is believed the Demand will come to the attention of the Debtor, and this date will be the deemed date of service. We believe the Practice Direction may reference how to calculate this date, but until such time as that is published we will reference the date as the date of service if served before 16.30 hours, or the following working day if served after 16.30 hours. Documents served at a weekend will refer to deemed service being the following working day. This may be subject to change on sight of the Practice Direction, and if this is the case, any Certificates already issued can be amended.

Bankruptcy Petitions will now reference the deemed date of service based on whether service was effected before or after 16.30 hours.

Changes to Statutory Demand Templates

All clients should be aware that the templated forms used for Statutory Demands have been amended to reflect this change in Rules.

View Part 10 Chapter 1 of the Insolvency Rules 2016 here

2016 Insolvency Rules

Templated Statutory Demand forms can be found here, under Bankruptcy & Insolvency

Please note however we believe Statutory Demand Form SD2 is factually incorrect in Part A, and should reference the amendment as featured below. You will note form SD3 shows the correct wording. It is likely for SD2 will be amended in coming weeks, but for now you may wish to amend manually.

……..when referencing the Court to which any Set Aside Application should be made (Part A), the Demand should now include a statement that rule 10.4 (4) of the Insolvency (England and Wales) Rules 2016 states to which court such an application should be made; and the name of the court of hearing centre of the County Court to which, according to the present information, the debtor must make an application (i.e. the High Court, the County Court at Central London or a named hearing centre of the County Court as the case may be).

We will be checking all received Demands in the coming weeks and making clients aware of any which do not appear to be in the new format.

Dealing with Ongoing Matters

For any Statutory Demands issued prior to 6 April 2017, which are ongoing for service, we will continue to serve. You can of course amend the Demand and resend us a revised Demand should you wish.

Please contact Nicola Ashby on 01543 888434 or for more information

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